Which bus is the better choice based on a life-cycle


A Southern Georgia school district is considering ordering 55 ?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 24?% compared to? gasoline-powered buses and 5?% compared to diesel ones. But they come at a premiumlong dash?$108 comma 000 for a propane? model, ?$11 comma 000 more than the diesel equivalent.

The propane bus operating cost? (above and beyond fuel? cost) is 39 ?cents/mile, compared to 48 cents for the diesel. Diesel fuel costs about ?$2?/gallon in? Georgia, about? $1 more than propane. Bus mileage is 14 mpg for the propane model vs. 11 mpg for diesel. The life of a school bus in the district averages 11 ?years, and each bus travels an average of 37 comma 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 ?$ ____________. ?(Round your response to the nearest? dollar.)

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Operation Management: Which bus is the better choice based on a life-cycle
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