QUESTIONS A large university that is currently facing severe parking problems on its campus is considering...

Transcribed Image Text:

QUESTIONS A large university that is currently facing severe parking problems on its campus is considering constructing parking decks off- campus. The shuttle service could pick up the students at the off-campus parking deck and transport them to various locations on campus. The university would charge a small fee for each shuttle ride, and the student could be quickly and economically transported to their classes. The funds raised by the shuttle service would be used to pay for the shuttle trolleys which would cost $170,000 each. Each trolley has a 12-year service life within estimated salvage value of $12,000. To operate each trolley, additional expenses will be incurred. First, drivers' annual expenses of at $70,000, secondly, maintenance at $15,000 and insurance costs $5000 annually. If the student pays 10 cents (One $100 cents) for each ride, determine the annual ridership per trolley (number of shuttle rides per year) required to justify the shuttle project assuming that interest rate is 10%. 4B 10% FIP PIF A/F A/P F/A P/A A/G PIG 1.100 9091 1.0000 1.1000 1.000 0.909 0 2 1210 3264 4762 5762 2.100 1.736 0476 0.826 3 1331 7513 3021 4021 3310 2.487 0.937 2.329 4 1.464 6830 2155 3155 4.641 3.170 1381 4.378 5 1611 6209 1638 2638 6.105 3.791 1.810 6.862 1.772 3645 1296 2296 7.716 4.355 2224 9.684 7 1949 5132 1054 2054 9.487 4.868 2622 12.763 2144 4665 0874 1874 11.436 5.335 3.004 16.029 . 2358 4241 0736 1736 13.579 5.759 3.372 19.421 IP 2.594 3855 0627 1627 15.937 6.145 3.725 22.891 11 2853 3505 0540 .1540 18.531 6.495 4.064 26.396 12 3.138 3186 0468 1468 21.384 6.814 4.388 29.901 QUESTIONS A large university that is currently facing severe parking problems on its campus is considering constructing parking decks off- campus. The shuttle service could pick up the students at the off-campus parking deck and transport them to various locations on campus. The university would charge a small fee for each shuttle ride, and the student could be quickly and economically transported to their classes. The funds raised by the shuttle service would be used to pay for the shuttle trolleys which would cost $170,000 each. Each trolley has a 12-year service life within estimated salvage value of $12,000. To operate each trolley, additional expenses will be incurred. First, drivers' annual expenses of at $70,000, secondly, maintenance at $15,000 and insurance costs $5000 annually. If the student pays 10 cents (One $100 cents) for each ride, determine the annual ridership per trolley (number of shuttle rides per year) required to justify the shuttle project assuming that interest rate is 10%. 4B 10% FIP PIF A/F A/P F/A P/A A/G PIG 1.100 9091 1.0000 1.1000 1.000 0.909 0 2 1210 3264 4762 5762 2.100 1.736 0476 0.826 3 1331 7513 3021 4021 3310 2.487 0.937 2.329 4 1.464 6830 2155 3155 4.641 3.170 1381 4.378 5 1611 6209 1638 2638 6.105 3.791 1.810 6.862 1.772 3645 1296 2296 7.716 4.355 2224 9.684 7 1949 5132 1054 2054 9.487 4.868 2622 12.763 2144 4665 0874 1874 11.436 5.335 3.004 16.029 . 2358 4241 0736 1736 13.579 5.759 3.372 19.421 IP 2.594 3855 0627 1627 15.937 6.145 3.725 22.891 11 2853 3505 0540 .1540 18.531 6.495 4.064 26.396 12 3.138 3186 0468 1468 21.384 6.814 4.388 29.901