Capital Budgeting Analysis

Column1 cost of 4, 32 seat busses (1

Day 1 $ 1,340,000.00
year
1
2
3
4
5
6
7
 8
9
10
11
NPV $2,456
IRR 25%

Payback Period
year year2 year3
0 -1340000
1 394239 394239
2 386087 780326
3 377538 1157864
4 368573 1526437
5 359168 1885605
6 349302 2234907
7 338949 2573856
8 328084 2901940
9 316680 3218620
10 304709 3523329
11 292140 3815469
PBP a+(b-c)/d
PBP 3.5

Bus Fares per Week

Column1 fares daily days
Monday - Thursday
7:20am 125 4
noon 80 4
4:45pm 140 4
9:30pm 55 4
Friday
7:20am 50 1
noon 25 1
4:45pm 55 1

Bus Miles Driven per Year

Column1 Column2 miles(round trip)
Monday - Thrusday
7:20am 4 50
noon 2 50
4:45pm 4 50
9:30pm 2 50
Total Monday - thrusday

Friday
7:20am 2 50
noon 1 50
4:45pm 2 50

total Friday
weeks
Total miles per year
Price of one way fare Total fare revenue (2)

7.43 572976
7.43 572976
7.43 572976
7.43 572976
7.43 572976
7.43 572976
7.43 572976
 7.43 572976
7.43 572976
7.43 572976
7.43 572976

total Column2

500
320
560
220
 1600

50
25
55 130
1730

days miles per trip

4 800
4 400
4 800
4 400

1 100
1 50
1 100
 A Case study Employing Capital budgeting and Creat
Projected Bus Schedule and Passengers
Passengers: Monday - Thursday
Departure Departure2
Departure Departure2
Departure Departure2
Departure Departure2
Departure Departure2

Passengers: Friday
Departure Midtown a→Valley University
Departure Midtown a→Valley University
Departure Midtown a→Valley University
Departure Midtown a→Valley University
Departure Midtown a→Valley University

Busses Needed [32 passenger]

Departure Peak Demand (one way)
Departure Peak Demand (one way)
Departure Peak Demand (one way)
Departure Peak Demand (one way)
Departure Peak Demand (one way)

Fuel cost (3) Maintaince cost (4)

69412 23200
72517 24360
76868 25578
81480 26857
86368 28200
91550 29610
97044 31090
102866 32645
109038 34277
115580 36991
122515 37790
Column22

2400

250
2650
45
119250
apital budgeting and Creative Thinking
edule and Passengers

Departure3
Departure3
Departure3
Departure3
Departure3

Valley University→ a Midtown Column1 Column2

Valley University→ a Midtown
Valley University→ a Midtown
Valley University→ a Midtown
Valley University→ a Midtown

Buses Needed
Buses Needed
Buses Needed
Buses Needed
Buses Needed

Dispatch emergency bus(5) Driver salary (6)

Net cashflow/(outflow)

-1340000

5500 87075 394239

5775 89687 386087
6064 92378 377538
6367 95149 368573
6685 98004 359168
7020 100944 349302
7371 103972 338949
7739 107091 328084
8129 110304 316680
8532 113613 304709
8959 117022 292140
hflow/(outflow)