Business, 24.10.2019 03:00 terencehouse

Alarge state university, currently facing a severe parking shortage on its campus, is

considering constructing parking decks off campus. a shuttle service composed of

minibuses could pick up students at the off-campus parking deck and quickly

transport them to various locations on campus. the university would charge a small

fee for each shuttle ride, and the students could be quickly and economically

transported to their classes. the funds raised by the shuttle would be used to pay for

minibuses, which cost about $150,000 each. each minibus has a 12-year service life,

with an estimated salvage value of $3000. to operate each minibus the following

additional expenses must be considered:

a large state university, currently facing a sever

if students pay $.10 for each ride, determine the annual ridership (i. e., the number

of shuttle rides per year) required to justify the shuttle project, assuming an interest

rate of 6%.

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