The transit authority wants to increase its bus services. The
transit authority would purchase 300 new energy-efficient buses.
They would replace the 150 buses now in operation, doubling the
size of the transit system. At a unit cost of $800,000 for each
bus, the total expenditure would be $240 million. The projected
salvage value of the old buses is $20,000 per bus, leaving $237
million to be financed by the transit authority. .
The transit authority would purchase the buses,...