Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A Southern Georgia school district is considering ordering 55 propane-fueled school buses. They're healthier, they're cleaner burning, and they're much quieter than the diesel option,

A Southern Georgia school district is considering ordering 55 propane-fueled school buses. "They're healthier, they're cleaner burning, and they're much quieter than the diesel option," said a school administrator. Propane-powered buses also reduce greenhouse gasses by 24%compared to gasoline-powered buses and 9% compared to diesel ones. But they come at a premiumlong dash$97,000for a propane model, $19,000 more than the diesel equivalent. The propane bus operating cost (above and beyond fuel cost) is 22 cents/mile, compared to 31 cents for the diesel. Diesel fuel costs about $2/gallon in Georgia, about $1 more than propane. Bus mileage is 9 mpg for the propane model vs. 6 mpg for diesel. The life of a school bus in the district averages 11 years, and each bus travels an average of 25,000 miles per year because the district is so large and rural. Which bus is the better choice based on a life-cycle analysis?

The total cost of using one propane-fueled bus during its life cycle ia $_______________(round your responce to the nearest dollar)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting For Management Control

Authors: Emmanuel

2nd Edition

186152272X, 978-1861522726

More Books

Students also viewed these Accounting questions

Question

Discuss how an AC is designed and implemented.

Answered: 1 week ago