Question: Problem F: Use the following to answer questions 37-40: Carson City is buying new buses, and has to select from two models. Model A (diesel

Problem F: Use the following to answer questions
Problem F: Use the following to answer questions 37-40: Carson City is buying new buses, and has to select from two models. Model A (diesel bus) costs $80,000 to buy, with a fuel efficiency of 12 miles/gallon. Its operating cost is $0 28/mile. Model B (a hybrid bus) costs $105,000 to purchase, but gets an average of 35 miles/gal. Its operating cost is $0.32/mile. The annual distance traveled is 25,000 miles, and the expected service life of either bus is 10 years. The average diesel price is $4.50/gallon 37. The total life cycle cost for Bus A (in $) is: A) 237,500 B) 243,750 C) 231,250 D) 238,750 E) 212,500 38. The total life cycle cost for Bus B (in $) is: A) 202,857 B) 224,773 C) 219,091 D) 229,432 E) 217.143 39. How many miles does each bus have to travel for the life cycle costs to be equal A) 233,051 B) 180,412 C) 165,563 D) 121,107 E) 139,949 40. What is the crossover point in years: A) 4.84 B) 9.32 C) 6.62 D) 7.21 E) 5.60

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