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Carson City is buying new buses, and has to select from two models. Model A (diesel bus) costs $90,000 to buy, with a fuel
Carson City is buying new buses, and has to select from two models. Model A (diesel bus) costs $90,000 to buy, with a fuel efficiency of 10 miles/gallon. Its operating cost is $0.28/mile. Model B (a hybrid bus) costs $115,000 to purchase, but gets an average of 22 miles/gal. Its operating cost is $0.35/mile. The annual distance traveled is 25,000 miles, and the expected service life of either bus is 10 years. The average diesel price is $4.25/gallon. 12. The total life cycle cost for Bus A (in $) is: a. 253,750 b. 241,280 c. 231,250 d. 266,250 e. 212,500
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