Project Analysis and Evaluation Group Assignment

Target group; 4th year accounting and finance evening and weekend students

Each group should include a maximum of 10 members

Last Submission date Tir /January 15/2016 E.C

Inter urban commuter Bajaj feasibility study

Mr. Chala had been overseas for 7 years. When he returned to his home town to live with his
family, he decided it was time to go into business for him. His friends and relatives went into
great detail about the problem they faced daily in their community, but when Chala looked
around himself he saw opportunities everywhere. While away from his country he had studied
small business management and felt confident he could be a successful entrepreneur in his own
backyard.

Using the opportunity study techniques he had learned, he looked around for the most promising
opportunities and finally decided on an inter-urban commuter Bajaj business. He figured that the
route between Yetebaberut and Tiwan could bear at least one more entrepreneur.

The concept was pretty straightforward. His service would be targeted at the commuter, the
person without a lot of baggage whose interest was speed, frequency and available space. He
intended to keep his Bajaj constantly in motion-departing as soon as they are full.

After doing this initial assessment, he had tentatively decided to go ahead with his concept. But
he was a long way from putting his or other people’s money on the table. His first task was to
evaluate whether the risk involved was worth all the work. There was a great deal of information
to research.

Instructions

1. Conduct a feasibility study and give advice for Mr. Chala whether to go ahead with this
business or reject it
2. Add any other element or information you consider to be of a key importance to the
preparation of a business plan.
3. Organize your research team to go and gather information.
4. Gather the information and prepare it in such a way as to present it to the class.
5. The information gathered and your presentation will be judged according to the following
criteria;
 Punctuality in submitting the report
 Quality and relevance of the information
 How is the information complete/scope
 Precision and exactitude of the information
  Usefulness of the information
 Presentation of the information

Critical information for inter-urban commuter Bajaj business

1. Pick time in each day of the week in which number of customers become high
2. Expected number of people travel between the two stations daily
3. Percentage of travelers without baggage
4. Cost of used Bajaj
5. Cost of new Bajaj
6. Average repair and maintenance cost per year
7. Expense of trade license
8. Estimated expenses for tax; federal, regional (state), Bajaj association
9. Driver salary
10. Average fuel cost single travel between the two stations
11. Average estimated cost needed for spare parts, mirrors and etc.
12. Presence of access of loan for small transport business from banks, Micro finances
13. From where the finance /money can be acquired and in what form?