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A transit bus costs $300000 and has an expected life of 10 years with $0 salvage value; it drives 43000 km/year. It gets 44 L/100km
A transit bus costs $300000 and has an expected life of 10 years with $0 salvage value; it drives 43000 km/year. It gets 44 L/100km diesel, and diesel costs the transit agency $0.97/L. The bus completes a round trip route of 20 km in 1 hour. The bus must recover $59/hour for wages to pay not only for the driver wages but office and support staff as well. The discount rate is 5.9%. The bus company repays the capital costs by making a fixed payment each year. Calculate the nominal dollar value (Rt) that the bus company must budget each year in order to attain the same net present value as the bus purchase. Give your value to the nearest dollar. Answer: Calculate the total cost per round trip for the bus, taking into account repayment of the capital cost, fuel cost, and wage cost values given above; do not include any other costs. Report your value to the nearest cent. Answer: Is your cost per round trip given in nominal or real dollars? Select one: O a. Nominal b. Real
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