P17.34 Analysis of environment costs: local government Brisbane 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 250 000 kilometres per annum, and will last 3 years, with zero disposal value. There are three types of buses that look attractive: a conventional petrol engine that can be converted to LPG, a petrol electric (battery) model, and a diesel bus. The operating information for each bus is below: Petrol/LPG Petrol Electric Model Diesel CO2 emissions Purchase price Maintenance costs per km Fuel consumption 290 gms per km 15 gms per km $175 000 $295 000 $0.46 $0.56 35 litres per 100 km on petrol 10 litres per 100 km 15 litres per 100 km on LPG $1.05/0.45 $1.05* 400 000 km 450 000 km $14 000 $19 000 250 gms per km $195 000 $0.89 15 litres per 100 km Fuel price Life of the engine Cost of replacement engine $1.10 1 000 000 km $35 000 * Cost of petrol. Assume that fuel costs for electric power are insignificant. Required: 1 Consider which of the three buses is the more attractive option on financial grounds. State clearly any assumptions that you need to make. 2 Repeat the analysis again, but only taking into account the environmental criteria. 3 Write a recommendation to council outlining which bus it should purchase