Question: Problem S5.11 Question Help A Southern Georgia school district is considering ordering 57 propane-fueled school buses. They're healthier, they're cleaner burning, and they're much quieter

Problem S5.11 Question Help A Southern Georgia

Problem S5.11 Question Help A Southern Georgia school district is considering ordering 57 propane-fueled school buses. "They're healthier, they're cleaner burning, and they're much quieter than the diesel option," said a school administrator. Propane-powered buses also reduce greenhouse gasses by 18% compared to gasoline-powered buses and 7% compared to diesel ones. But they come at a premium$91,000 for a propane model, $11,000 more than the diesel equivalent. The propane bus operating cost (above and beyond fuel cost) is 35 cents/mile, compared to 45 cents for the diesel. Diesel fuel costs about $4/gallon in Georgia, about $1 more than propane. Bus mileage is 11 mpg for the propane model vs. 8 mpg for diesel. The life of a school bus in the district averages 10 years, and each bus travels an average of 26,000 miles per year because the district is so large and rural. Which bus is the better choice based on a life-cycle analysis? The total cost of using one propane-fueled bus during its life cycle is $ 252,909. (Round your response to the nearest dollar.) The total cost of using one diesel-fueled bus during its life cycle is $ Round your response to the nearest dollar.) Problem S5.11 Question Help A Southern Georgia school district is considering ordering 57 propane-fueled school buses. "They're healthier, they're cleaner burning, and they're much quieter than the diesel option," said a school administrator. Propane-powered buses also reduce greenhouse gasses by 18% compared to gasoline-powered buses and 7% compared to diesel ones. But they come at a premium$91,000 for a propane model, $11,000 more than the diesel equivalent. The propane bus operating cost (above and beyond fuel cost) is 35 cents/mile, compared to 45 cents for the diesel. Diesel fuel costs about $4/gallon in Georgia, about $1 more than propane. Bus mileage is 11 mpg for the propane model vs. 8 mpg for diesel. The life of a school bus in the district averages 10 years, and each bus travels an average of 26,000 miles per year because the district is so large and rural. Which bus is the better choice based on a life-cycle analysis? The total cost of using one propane-fueled bus during its life cycle is $ 252,909. (Round your response to the nearest dollar.) The total cost of using one diesel-fueled bus during its life cycle is $ Round your response to the nearest dollar.)

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!