Orange County NC Website
Browse       Search
0049R <br /> .. ,..,:-i <br /> LIFE CYCLE COST <br /> The award of this bid will be based on life cycle cost which evaluates both <br /> operating expenses and purchase price. The following formula will be used in <br /> calculating the life cycle cost for the vehicle. <br /> * of miles driven <br /> ( <br /> annual <br /> EPA Gas mileage X Price of gas + <br /> maint. cost + annual <br /> insurance cost <br /> 2.487 + purchase price = LIFE CYCLE COST <br /> X <br /> Where: 4 of miles driven = 57,000 mi/yr <br /> EPA gas mileage = from 1982 EPA gas mileage <br /> guide for particular car <br /> Price of gas = $1.23/gal <br /> Est. annual maint. cost = from The Cat Book 1982 <br /> . _ Vehicles, by Center for Auto <br /> Safety, Washington D.C. for <br /> particular car <br /> Annual insurance cost = from insurance carriers <br /> for particular car <br /> 2.481 = discount factor* <br /> purchase price = as submitted on bid <br /> *Discount factor is used to make future expenses for operation of the vehicle <br /> comparable to initial costs incurred in the present time. Useful life of three <br /> years for the vehicles and an inflation rate of 10% is assumed. <br /> A <br /> - - - <br />