Group 7
Public Transit Bus
Comparison
By:
David Berdahl (Organizer)
Joshua Warwick (Techie)
Tony Nong (Summarizer)
The Project
 Public
Transportation Bus
Bus Descriptions
 10



7



Year Bus ($185,000)
Freightliner Chassis
CNG Powered
20 passenger (18 Regular + 2 Wheelchair)
Year Bus ($80,000)
Ford Chassis
Diesel Powered
20 passenger (18 Regular + 2 Wheelchair)
Assumptions

City is buying a new bus and needs to
decide which one is more economical
(Fixed output)

Catastrophic engine failure is not included

Both busses will bring in the same amount
of profit (customer preference)

Pollution Regulations
Specification

7 yrs bus
 Salvage value






$12,048.44
$22,200
Maintenance


$4,000
Insurance/year

$13,800
Gas cost/year


$13,200
Maintenance

10 yrs bus
 Salvage value
$2,500
Insurance/year


$27,600
Gas cost/year

$11,668.20
Analysis
 MARR
(15%)
 EUAC (Minimize)
 Present Worth of Cost (Minimize)
 Maximize Benefit Cost Ratio
 Sensitivity Analysis
Analysis

7 year

10 year

EUAC= $58,054

EUAC= $95,151

NPW= $235,784.98

NPW= $67,491.70

20 years
Sensitivity analysis
 Maintenance

10 year has to go up by 370%
 Fuel

and Maintenance
7 year has to go up by:
• Fuel= 300%
• Maintenance = 200%
 Tax

Incentive
10 year has to go up by 1,333%
Net Present Worth Analysis
O rig in al Assu mp tio n s
$250,000.00
$200,000.00
$150,000.00
NP W
$100,000.00
Ty pe 7
$50,000.00
Ty pe 8
$0.00
0
2
4
6
8
10
-$50,000.00
-$100,000.00
-$150,000.00
Ye a rs
12
14
16
18
20

Increase Type 7 Gas Inflation by 6%
Increase Type 7 Gas and Maintenance Consumption
by 15%
Increase Salvage Value and Benefit by 10% on Type 8
$150,000.00
$100,000.00
$50,000.00
NPW

Type 7
Type 8
$0.00
0
2
4
6
8
10
-$50,000.00
-$100,000.00
-$150,000.00
Years
12
14
16
18
20
Conclusion
 It
seems that the 7 year bus is by far the
best choice
 It
would take a lot for the 10 year bus to be
the better choice but for some may be the
better choice because of aesthetics
Information Gathering
 Internet
 Public
Transit Agencies (RTA, City of
Corona, Foothill Transit)
 Private Transportation Companies
 Bus Manufacturers