- A proposed new bus route is expected to require 12 new buses and to operate a total of 720,000 veh-km per year and 40,000 veh-h per year. Buses cost $210,000 each, have a 10-year life, and a salvage value after 10 years of $27,000 each. Operating costs include labor costs (wages, benefits, etc.) at $50.00 per veh-h, maintenance costs at $0.18 per veh-km, and cost of fuel, oil, tires, etc. at $0.42 per veh-km. Calculate the life-cycle cost (present value) of adding this route and operating it for 10 years, assuming an annual interest rate of 5 percent.