Calculate the life annual interest of adding this route

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Reference no: EM131179688

A proposed new bus route is expected to require 12 new buses and to operate a total of 720,0000 vehicle miles per(for all 12 buses) and 48,000 vehicle- hours per hours (total for all 12 buses) Buses cost $550,000 each, have a 10 year life, $30-000 each. Operating costs include labor costs vehicle-mile and $75 00 Per vehicle-hour, maintenance costs at $1 96 per cycle cost $1 65 per vehicle-mile. (A) Calculate the life annual interest of adding this route and operating it for 10 years using an,f the bus route saves $20 per rider per trip and the the for 250 days per year, what is What the for the 10 year life using 10% annual interest rate? (C) cost for this new bus route and (D) Should the bus route be implemented?

Reference no: EM131179688

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