Fueled bus is better choice based on life-cycle analysis

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Reference no: EM131656268

A Southern Georgia school district is considering ordering 48 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 20? compared to? gasoline-powered buses and 9?% compared to diesel ones. But they come at a premiumlong dash—?$110,000 for a propane? model, $18,000 more than the diesel equivalent. The propane bus operating cost? (above and beyond fuel? cost) is 30 cents/mile, compared to 40 cents for the diesel. Diesel fuel costs about$4?/gallon in? Georgia, about? $1 more than propane. Bus mileage is 10mpg for the propane model vs.9 mpg for diesel. The life of a school bus in the district averages 10 years, and each bus travels an average of 36,000 miles per year because the district is so large and rural. Which bus is the better choice based on a? life-cycle analysis?

a. The total cost of using one? propane-fueled bus during its life cycle is $326,000. (Round your response to the nearest? dollar.)

b. The total cost of using one? diesel-fueled bus during its life cycle is $396,000.(Round your response to the nearest? dollar.)

c. The propane-fueled bus is the better choice based on a? life-cycle analysis.

Reference no: EM131656268

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