P1135 Analysis of environmental costs: local government LO17.8 Brisbane City Council is looking at buying two new minibuses for transporting senior citizens to the Gold Coast and other areas. A bus is expected to travel 250000 kilometres per annum and will last 3 years. with zero disposal value. There are three types of buses that took attractive: a conventional petrol engine that can be converted to LPG, a petrolelectric (battery) model and a diesel bus. The operating information for each bus follows: Petrol/LPG Petrolelectric model Diesel C02 emissions 290 g per kilometre 15 g per kilometre 250 g per kilometre Purchase price $175000 $590 000 $292 500 Maintenance costs per kilometre $0. 69 $0.84 $1.35 Petrol/LPG Petrolelectric model Diesel Fuel consumption 35 litres per 100 kilometres 10 litres per l5 litres per on petrol 100 kilometres 100 kilometres 15 litres per 100 kilometres on LPG Fuel price per litre $1.25 petrol/$0.45 LPG $1.25* $1.20 Life of the engine 400 000 kilometres 450000 kilometres 1 000000 kilometres Cost ofreplacement engine $14000 $19000 $35 000 'Cost of petrol. Assume that fuel costs for electric power are insignicant. Required: 1. Consider which of the three buses is the most attractive option on financial grounds. State clearly any assumptions that you need to make. 2. Repeat the analysis, but only taking into account the environmental data. 3. Write a recommendation to council outlining which bus it shouid purchase