Capital cost of LRT vs Bus
According to the Delcan study:
http://www.ottawa.ca/calendar/ottawa...14%20April.pdf
Double-decker hybrid buses were priced at $900,000.
LRT cars were priced at $5,000,000.
Since DD buses only hold 90 riders, we'll bump up the cost to match LRT cars rider capacity of 135. This means $900,000/82*135 = $1,481,707.
Ontario savings bonds are at 4.75%
http://www.ontariosavingsbonds.com/osbrates.html
Assume this is the lending rate (good luck getting that on a real car loan).
Using a mortgage calculator, we can figure out what the cost of borrowing money is.
Bus - 10 years = $187,256.42/year
Bus - 15 years = $137,967.41/year
Bus - 18 years = $121,851.01/year
LRV - 25 years = $337,195.14/year
LRV - 30 years = $306,957.71/year
25 year LRV minus Bus
10 - $149,938.72/year
15 - $199,227.73/year
18 - $215,344.13/year
30 year LRV minus Bus
10 - $119,701.29/year
15 - $168,990.30/year
18 - $185,106.70/year
So buses end up costing much less than rail vehicles by $120,000 to $215,000 per year per LRT vehicle equivalent in capital costs.