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Solve clearly.. A new bus route is proposed with the following estimated costs and income: 2 new buses at $50.000 each = $100.000 operating costs

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Solve clearly..

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A new bus route is proposed with the following estimated costs and income: 2 new buses at $50.000 each = $100.000 operating costs = $1/mi/2 buses (or $0.50/mi/bus) average speed including stops - 10 mph operating hours = 6 A.M.-9 P.M. 7 days/week overhead charged to this route = $10,000/yr average total number of riders on this route (includes both buses) daily = 900 at $0.25 each resale value of buses after 10 yr = negligible What is the rate of return if these estimates prove correct

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