1. Group 7 Public Transit Bus Comparison By: David Berdahl (Organizer) Joshua Warwick (Techie) Tony Nong (Summarizer)

2. The Project  Public Transportation Bus

3. Bus Descriptions  10 Year Bus ($185,000) Freightliner Chassis Freightliner Chassis CNG Powered CNG Powered 20 passenger (18 Regular + 2 Wheelchair) 20 passenger (18 Regular + 2 Wheelchair)  7 Year Bus ($80,000) Ford Chassis Ford Chassis Diesel Powered Diesel Powered 20 passenger (18 Regular + 2 Wheelchair) 20 passenger (18 Regular + 2 Wheelchair)

4. 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

5. Specification  7 yrs bus  Salvage value $2,500 $2,500  Insurance/year $13,200 $13,200  Maintenance $13,800 $13,800  Gas cost/year $12,048.44 $12,048.44  10 yrs bus  Salvage value $4,000  Insurance/year $22,200  Maintenance $27,600  Gas cost/year $11,668.20

6. Analysis  MARR (15%)  EUAC (Minimize)  Present Worth of Cost (Minimize)  Maximize Benefit Cost Ratio  Sensitivity Analysis

7. Analysis  7 year  EUAC= $58,054  NPW= $235,784.98 20 years 20 years  10 year  EUAC= $95,151  NPW= $67,491.70

8. Sensitivity analysis  Maintenance 10 year has to go up by 370% 10 year has to go up by 370%  Fuel and Maintenance 7 year has to go up by: 7 year has to go up by: Fuel= 300%Fuel= 300% Maintenance = 200%Maintenance = 200%  Tax Incentive 10 year has to go up by 1,333% 10 year has to go up by 1,333%

9. Net Present Worth Analysis

10.  Increase Type 7 Gas Inflation by 6%  Increase Type 7 Gas and Maintenance Consumption by 15%

11. 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

12. Information Gathering  Internet  Public Transit Agencies (RTA, City of Corona, Foothill Transit)  Private Transportation Companies  Bus Manufacturers