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PLEASE HELP ASAP.. THANKS IN ADVANCE! A proposed new bus route is expected to require 14 new buses and to operate a total of 840,
PLEASE HELP ASAP.. THANKS IN ADVANCE!
A proposed new bus route is expected to require 14 new buses and to operate a total of 840, 00 vehicle-miles per year (for all 14 buses) and 56, 000 vehicle- hours per year (total for all 14 buses). Buses cost $550, 000 each, have a 10 year life, and a salvage value after 10 years of $75, 000 each. Operating costs include labor costs (wages, benefits, etc.) at $85.00 per vehicle-hour, maintenance costs at $2.96 per vehicle-mile, and cost of fuel, oil, tires, etc, at $ 3.65 per vehicle-mile. Calculate the life cycle cost (net present value) of adding this route and operating it for 10 years using an annual interest rate of 8% If the bus route saves $20 per rider per day and the average number of riders is 1, 400 per day (total all 14 buses) for 250 days per year, what is the present value of the benefit for the 10 year life using 8% annual interest rate? What is the benefit to cost ration for this new bus route and Should the bus route be implemented
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