Mr. A lives in Ghatkopar with his wife and two children.

He works at CST and his wife works at Dadar.

His children go to school which is located in Vidyvihar at a 2km distance from home
He travels to Pune for 12 weekends year

Distance travelled

Daily commute for office (round trip)

Weekend getaways (round trip)

Local travelling
Weekend travelling (2 days trip)

Distance travelled annually

Fuel Cost

Petrol

Diesel

CNG

Car Loan

Down Payment
Rate of interest

Car Cost
Loan Amount

Car Servicing charges after xxxx kms

Car (petrol) 10,000
Car (diesel) 10,000

car (CNG) 10,000

The car needs first servicing after 10000 kms and subsequently after every
5000 kms

Toll taxes

Mumbai - Pune

Cab Services
Ola/ Uber
Every additional Km

Daily charges

Charges for Public transport

Ghatkopar to CST (First class) Train annual pass
Ghatkopar to Dadar (First class) Train annual pass
Kaali Peeli taxi
Auto Rickshaw
Train ticket fare from Mumbai to Pune (AC Chair car)

Current inflation rate

Note: Inflation will be applicable on all the fares of public transport, servicing
fees and cab fares
 Car Purchase Model

Estimate Of Business

Year 1
Travelling Cost
45 km
300 km Servicing cost
Fuel Cost
275 Days
24 Days

15,975 Kms

107 Rs/litre Profit Calculations

97 Rs/litre

25 Rs/kg Revenue

451,420
7.50%

1,200,000
748,580

Amount
8,000
8,000

8,000 Cash Flow Calculations

 Operating Cash Flows/Net Profit

Initial Investment

Debt amount raised / (repaid)

At the end of 5 years deposit
270 one way amount would be returned
Total Cash Flows
IRR
130 base fare (first 4 kms) NPV
7 per km
Opportunity Cost
130
Conclusion

6,102 Rs.
5,241 Rs.
25 per 1.5 km
21 per 1.5 km
375 Per Passenger

5%
Debt %
Year 1 Car CNG Car Petrol Car diesel Cabs (Ola/ Uber) Public transport

36,643

Total Cost - - - - -

Year - 1 Year - 2 Year - 3 Year - 4 Year - 5

Y0

- - - - -

2 3 4 5
Year- 0 Year - 1 Year - 2 Year - 3 Year - 4 Year - 5
 - - - - -

- - - - - -

- - - - - -
97
- - - - -
0 0 0 0 0 97
Err:523
Err:523

25.00%

-Since the IRR < Oppurtunity cost, Hence we should not accept the project

Data Table form Interest Rate %

Err:523 10% 11% 12% 13% 14%
20% #NUM! #NUM! #NUM! #NUM!
25% #NUM! #NUM! #NUM! #NUM! #NUM!

30% #NUM! #NUM! #NUM! #NUM! #NUM!

35% #NUM! #NUM! #NUM! #NUM! #NUM!

40% #NUM! #NUM! #NUM! #NUM! #NUM!
45% #NUM! #NUM! #NUM! #NUM! #NUM!
50% #NUM! #NUM! #NUM! #NUM! #NUM!
55% #NUM! #NUM! #NUM! #NUM! #NUM!
60% #NUM! #NUM! #NUM! #NUM! #NUM!
65% #NUM! #NUM! #NUM! #NUM! #NUM!
70% #NUM! #NUM! #NUM! #NUM! #NUM!
75% #NUM! #NUM! #NUM! #NUM! #NUM!
Expected growth per year

volume pice
5% 5%
 15% 16%
#NUM! #NUM!
#NUM! #NUM!

#NUM! #NUM!

#NUM! #NUM!
#NUM! #NUM!
#NUM! #NUM!
#NUM! #NUM!
#NUM! #NUM!
#NUM! #NUM!
#NUM! #NUM!
#NUM! #NUM!
#NUM! #NUM!
Car Cost 1,200,000
Down Payment 451,420
Remaining Loan 748,580
Rate of interest 7.50% months
Period 60
EMI ($15,000.00)

Period Opening PrincipaInterest EMI Principal repai Closing principal

1 748,580 4,679 15,000 10,321 738,258
2 738,258 4,614 15,000 10,386 727,872
3 727,872 4,549 15,000 10,451 717,422
4 717,422 4,484 15,000 10,516 706,905
5 706,905 4,418 15,000 10,582 696,324
6 696,324 4,352 15,000 10,648 685,676
7 685,676 4,285 15,000 10,715 674,961
8 674,961 4,219 15,000 10,781 664,180
9 664,180 4,151 15,000 10,849 653,331
10 653,331 4,083 15,000 10,917 642,414
11 642,414 4,015 15,000 10,985 631,429
12 631,429 3,946 15,000 11,054 620,376
13 620,376 3,877 15,000 11,123 609,253
14 609,253 3,808 15,000 11,192 598,061
15 598,061 3,738 15,000 11,262 586,799
16 586,799 3,667 15,000 11,333 575,466
17 575,466 3,597 15,000 11,403 564,063
18 564,063 3,525 15,000 11,475 552,588
19 552,588 3,454 15,000 11,546 541,042
20 541,042 3,382 15,000 11,618 529,423
21 529,423 3,309 15,000 11,691 517,732
22 517,732 3,236 15,000 11,764 505,968
23 505,968 3,162 15,000 11,838 494,130
24 494,130 3,088 15,000 11,912 482,219
25 482,219 3,014 15,000 11,986 470,233
26 470,233 2,939 15,000 12,061 458,172
27 458,172 2,864 15,000 12,136 446,035
28 446,035 2,788 15,000 12,212 433,823
29 433,823 2,711 15,000 12,289 421,534
30 421,534 2,635 15,000 12,365 409,169
31 409,169 2,557 15,000 12,443 396,726
32 396,726 2,480 15,000 12,520 384,206
33 384,206 2,401 15,000 12,599 371,607
34 371,607 2,323 15,000 12,677 358,929
35 358,929 2,243 15,000 12,757 346,173
36 346,173 2,164 15,000 12,836 333,336
37 333,336 2,083 15,000 12,917 320,420
38 320,420 2,003 15,000 12,997 307,422
39 307,422 1,921 15,000 13,079 294,344
40 294,344 1,840 15,000 13,160 281,183
41 281,183 1,757 15,000 13,243 267,941
42 267,941 1,675 15,000 13,325 254,615
43 254,615 1,591 15,000 13,409 241,207
44 241,207 1,508 15,000 13,492 227,714
45 227,714 1,423 15,000 13,577 214,137
46 214,137 1,338 15,000 13,662 200,476
47 200,476 1,253 15,000 13,747 186,729
48 186,729 1,167 15,000 13,833 172,896
49 172,896 1,081 15,000 13,919 158,976
50 158,976 994 15,000 14,006 144,970
51 144,970 906 15,000 14,094 130,876
52 130,876 818 15,000 14,182 116,694
53 116,694 729 15,000 14,271 102,423
54 102,423 640 15,000 14,360 88,064
55 88,064 550 15,000 14,450 73,614
56 73,614 460 15,000 14,540 59,074
57 59,074 369 15,000 14,631 44,443
58 44,443 278 15,000 14,722 29,721
59 29,721 186 15,000 14,814 14,907
60 14,907 93 15,000 14,907 0