Development of Mobile Scooter
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AI Summary
The assessment deals with a start-up business which would be developing an innovative type of scooter which would have special features. The business is mainly associated with development of an innovative product and the project which is planned by the business is innovative and at the same time environmental friendly.
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Running head: PROJECT ANALYSIS
Project Analysis
Name of the Student:
Name of the University:
Author’s Note:
Project Analysis
Name of the Student:
Name of the University:
Author’s Note:
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1PROJECT MANAGEMENT
Table of Contents
Project Title.....................................................................................................................................2
Development of Mobile Scooter..................................................................................................2
Project Overview.............................................................................................................................2
Objective of the Assessment............................................................................................................3
Expected outcomes and Benefits.....................................................................................................4
Literature Review............................................................................................................................5
Financial Model of Case Project......................................................................................................9
Assumptions..............................................................................................................................10
Constraints.................................................................................................................................11
Risks..........................................................................................................................................11
Cash Inflows and Cash Outflows..............................................................................................12
Financial and Sensitivity Analysis.................................................................................................15
Financial Analysis.....................................................................................................................16
Sensitivity Analysis...................................................................................................................16
Capital Budgeting......................................................................................................................17
Selection of Best Alternative.....................................................................................................17
References......................................................................................................................................18
Appendix........................................................................................................................................21
Table of Contents
Project Title.....................................................................................................................................2
Development of Mobile Scooter..................................................................................................2
Project Overview.............................................................................................................................2
Objective of the Assessment............................................................................................................3
Expected outcomes and Benefits.....................................................................................................4
Literature Review............................................................................................................................5
Financial Model of Case Project......................................................................................................9
Assumptions..............................................................................................................................10
Constraints.................................................................................................................................11
Risks..........................................................................................................................................11
Cash Inflows and Cash Outflows..............................................................................................12
Financial and Sensitivity Analysis.................................................................................................15
Financial Analysis.....................................................................................................................16
Sensitivity Analysis...................................................................................................................16
Capital Budgeting......................................................................................................................17
Selection of Best Alternative.....................................................................................................17
References......................................................................................................................................18
Appendix........................................................................................................................................21
2PROJECT MANAGEMENT
Project Title
Development of Mobile Scooter
The assessment deals with a start-up business which would be developing an innovative
type of scooter which would have special features. The business is mainly associated with
development of an innovative product and the project which is planned by the business is
innovative and at the same time environmental friendly. The project is expected to be popular
among the consumers due to the various features which is offered by the product.
Project Overview
The management of the company is trying to start-up a business which would developing
a new brand of scooter which would be innovative and would be including the most advanced
technology. The business which is trying to introduce a new form of vehicle in the market which
does not utilizes non-renewable source of energy and depends on solar power for operating
(Bethune 2017). The management of the company ensures that the new product would
effectively meet the requirements of the consumers and would also be following a fuel-efficient
approach (Nocerino et al. 2014). The project would be focus on promoting sustainability
practices in the business and the product which is considered by the management of the company
is innovative in every aspect. The management guarantees that the new product would be
efficient and would be a useful tool for conserving energy (Brauer et al. 2016). As per the
management of the company, the following features can be expected from the new product
which is being developed by the management of the company.
ï‚· The new scooter would not be requiring any type of non-renewable fuel but will be
operating on solar power which makes the product sustainable in nature and a major
towards controlling pollution which are emitted by vehicles (Gopal and Thakkar 2016).
Project Title
Development of Mobile Scooter
The assessment deals with a start-up business which would be developing an innovative
type of scooter which would have special features. The business is mainly associated with
development of an innovative product and the project which is planned by the business is
innovative and at the same time environmental friendly. The project is expected to be popular
among the consumers due to the various features which is offered by the product.
Project Overview
The management of the company is trying to start-up a business which would developing
a new brand of scooter which would be innovative and would be including the most advanced
technology. The business which is trying to introduce a new form of vehicle in the market which
does not utilizes non-renewable source of energy and depends on solar power for operating
(Bethune 2017). The management of the company ensures that the new product would
effectively meet the requirements of the consumers and would also be following a fuel-efficient
approach (Nocerino et al. 2014). The project would be focus on promoting sustainability
practices in the business and the product which is considered by the management of the company
is innovative in every aspect. The management guarantees that the new product would be
efficient and would be a useful tool for conserving energy (Brauer et al. 2016). As per the
management of the company, the following features can be expected from the new product
which is being developed by the management of the company.
ï‚· The new scooter would not be requiring any type of non-renewable fuel but will be
operating on solar power which makes the product sustainable in nature and a major
towards controlling pollution which are emitted by vehicles (Gopal and Thakkar 2016).
3PROJECT MANAGEMENT
ï‚· One of the key features which makes the product special in relation to normal scooters or
bikes is that it can be folded into small suitcase type of thing. Therefore, this shows that
the product will be portable and light weighted. This also means that you can carry the
product any place you want and not have parking issues. For instance, a college student
can take the scoter with him to the class. This would just be similar to a bag and therefore
is easily portable.
ï‚· The new scooter which is being developed would be operating on solar power which
reduced the risks of pollution and systematically reduces the costs of environment license
and parking costs. In addition to this, the battery life of the product would be superb as
the management expects that it can operate 12 hours in a single charge. Moreover, the
scooter can be in 1-hour time in charge mode which would be another advantage of the
product.
ï‚· The scooter can also be used as power bank as well for charging laptops, mobile phones.
This is another important feature of the product which makes the product special. In
addition to this, the product would be quite helpful in travel and business environment.
ï‚· In addition to this, one of the key feature of this new scooter would be that it would be
light weight and therefore would have a perfect balance which also makes the product
safe.
Objective of the Assessment
The assessment will be undertaking research on innovative product development and how
the same affects the society and the market. The product which the management of the company
is considering is related to automobile sector. As per the management of the company, the new
product would be energy efficient and would be sustainable. The name of the product which is
selected by the management of the company would be Mobile Scooters. The objectives which
can be identified for this assessment are listed below in details:
ï‚· The research would be assessing the automobile market and ascertain whether the trends
are favorable for the new products which the management of the company is planning to
introduce in the market.
ï‚· One of the key features which makes the product special in relation to normal scooters or
bikes is that it can be folded into small suitcase type of thing. Therefore, this shows that
the product will be portable and light weighted. This also means that you can carry the
product any place you want and not have parking issues. For instance, a college student
can take the scoter with him to the class. This would just be similar to a bag and therefore
is easily portable.
ï‚· The new scooter which is being developed would be operating on solar power which
reduced the risks of pollution and systematically reduces the costs of environment license
and parking costs. In addition to this, the battery life of the product would be superb as
the management expects that it can operate 12 hours in a single charge. Moreover, the
scooter can be in 1-hour time in charge mode which would be another advantage of the
product.
ï‚· The scooter can also be used as power bank as well for charging laptops, mobile phones.
This is another important feature of the product which makes the product special. In
addition to this, the product would be quite helpful in travel and business environment.
ï‚· In addition to this, one of the key feature of this new scooter would be that it would be
light weight and therefore would have a perfect balance which also makes the product
safe.
Objective of the Assessment
The assessment will be undertaking research on innovative product development and how
the same affects the society and the market. The product which the management of the company
is considering is related to automobile sector. As per the management of the company, the new
product would be energy efficient and would be sustainable. The name of the product which is
selected by the management of the company would be Mobile Scooters. The objectives which
can be identified for this assessment are listed below in details:
ï‚· The research would be assessing the automobile market and ascertain whether the trends
are favorable for the new products which the management of the company is planning to
introduce in the market.
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4PROJECT MANAGEMENT
ï‚· The research would be projecting the start-up costs for the business and also assess
different scenario which are probable for the product which the management of the
company is planning to introduce (Roda et al. 2017).
ï‚· The research would be indicating the role of sustainable products in the market and how
the same are important for the shaping the future of automobile market.
Expected outcomes and Benefits
The management of the company which is undertaking the new start-up business is
confident that the product would be able to make a mark in the market. This is anticipated by the
management of the company as emphasis has been shifted from fuel system vehicles to fuel
efficient vehicle. This has been done as the governments are becoming aware of the consequence
which such vehicles have on the environment and ultimately affects the health of the people.
Therefore, the management anticipates that in future the use of electric vehicles would be more
and therefore has initiated the change and have decided to introduced the new product (Zuev
2018). The management of the company anticipates that the new product would be attract the
attention of the customers and especially the teenagers due to the various features which is
offered by the product (Riggs 2018). It is also anticipated by the management of the company
that the product would also appeal to the working class as the same will be portable and easy to
fit in small spaces and even carry the same at work.
The benefits which can be identified for the new product from the point of view of the
management of the company are listed below in details:
ï‚· The product would enable the management of the company to target a major group of
customers which can effectively enhance the revenue which is generated by the business
(Fawcett et al. 2018).
ï‚· The research would be projecting the start-up costs for the business and also assess
different scenario which are probable for the product which the management of the
company is planning to introduce (Roda et al. 2017).
ï‚· The research would be indicating the role of sustainable products in the market and how
the same are important for the shaping the future of automobile market.
Expected outcomes and Benefits
The management of the company which is undertaking the new start-up business is
confident that the product would be able to make a mark in the market. This is anticipated by the
management of the company as emphasis has been shifted from fuel system vehicles to fuel
efficient vehicle. This has been done as the governments are becoming aware of the consequence
which such vehicles have on the environment and ultimately affects the health of the people.
Therefore, the management anticipates that in future the use of electric vehicles would be more
and therefore has initiated the change and have decided to introduced the new product (Zuev
2018). The management of the company anticipates that the new product would be attract the
attention of the customers and especially the teenagers due to the various features which is
offered by the product (Riggs 2018). It is also anticipated by the management of the company
that the product would also appeal to the working class as the same will be portable and easy to
fit in small spaces and even carry the same at work.
The benefits which can be identified for the new product from the point of view of the
management of the company are listed below in details:
ï‚· The product would enable the management of the company to target a major group of
customers which can effectively enhance the revenue which is generated by the business
(Fawcett et al. 2018).
5PROJECT MANAGEMENT
ï‚· It is anticipated by the management of the company that the production of mobile
scooters would be cost effective as the same is anticipated to reduce the operating costs
of the business.
ï‚· The product would help the management of the company to appropriately follow
corporate social responsibilities of the business.
ï‚· Most importantly the new product would not be using fuel which is a big step towards
sustainable development.
Literature Review
At global level, the emphasis on sustainability has reached its highest level and most of
the industries are trying to incorporate sustainable practices in a business for making the business
more efficient (Arjaliès and Mundy 2013). It is also to be noted that the government across the
world are giving a boast to sustainable practices by making it mandatory to follow CSR policies
in a business (Luthra, Garg and Haleem 2015). There have been significant changes in
automobile industry as the market preference shifted from good looking vehicles to fuel efficient
vehicles and vehicles which offers better mileage. This has been seen in scooter or bike industry
as well which is a favorable practice (Garche et al. 2017).
In case of bike or scooter industry a new type of product has been introduced which are
electric scooters which do not require fuel as a source of energy but relies on electricity or solar
power for operating. The product is still in its infancy stage but it is anticipated that the new type
of product would gain prominence in future and would be able to attract consumers in the
market. There are several benefits which can be highlighted with the use of electric scooters such
as environmental efficiency (Requardt 2017). The new product would be sustainable and
therefore, it would be preferable by customers. The global electric scooters market size was
valued at USD 17.43 billion in 2018 and is projected to witness a CAGR of 8.5% during the
forecast period. Declining costs of batteries are also expected to create favourable opportunities
ï‚· It is anticipated by the management of the company that the production of mobile
scooters would be cost effective as the same is anticipated to reduce the operating costs
of the business.
ï‚· The product would help the management of the company to appropriately follow
corporate social responsibilities of the business.
ï‚· Most importantly the new product would not be using fuel which is a big step towards
sustainable development.
Literature Review
At global level, the emphasis on sustainability has reached its highest level and most of
the industries are trying to incorporate sustainable practices in a business for making the business
more efficient (Arjaliès and Mundy 2013). It is also to be noted that the government across the
world are giving a boast to sustainable practices by making it mandatory to follow CSR policies
in a business (Luthra, Garg and Haleem 2015). There have been significant changes in
automobile industry as the market preference shifted from good looking vehicles to fuel efficient
vehicles and vehicles which offers better mileage. This has been seen in scooter or bike industry
as well which is a favorable practice (Garche et al. 2017).
In case of bike or scooter industry a new type of product has been introduced which are
electric scooters which do not require fuel as a source of energy but relies on electricity or solar
power for operating. The product is still in its infancy stage but it is anticipated that the new type
of product would gain prominence in future and would be able to attract consumers in the
market. There are several benefits which can be highlighted with the use of electric scooters such
as environmental efficiency (Requardt 2017). The new product would be sustainable and
therefore, it would be preferable by customers. The global electric scooters market size was
valued at USD 17.43 billion in 2018 and is projected to witness a CAGR of 8.5% during the
forecast period. Declining costs of batteries are also expected to create favourable opportunities
6PROJECT MANAGEMENT
for companies. Moreover, e-scooters are fuel-efficient, eco-friendly, easy to handle, and compact
in size, which is also boosting their demand. The new products which are offered by the business
would be efficient and energy sustainable (Galatoulas, Genikomsakis and Ioakimidis 2018).
Therefore, it can be established that the new product which the management of the company is
planning to introduce is appropriate and would get demand from the consumers in the market.
Figure 1: (Size of the Industry in USA)
Source: (Grandviewresearch.com. 2019)
The above figure effectively shows that the sale of such innovative bikes or scooter has
increased over the years which shows positive response of the people towards e-scooter bikes.
The figure above shows different varieties of scooter which is introduced in the market (Wu and
Wang 2013). The above analysis also shows that sales and demand for folded scooters have
increased significantly in 2018 and the same is anticipated to increase further in the years to
come. There has been a constant demand for change and modernization in automobile industry
(Kumar and Rahman 2016). This has led to development of new and innovative products in the
for companies. Moreover, e-scooters are fuel-efficient, eco-friendly, easy to handle, and compact
in size, which is also boosting their demand. The new products which are offered by the business
would be efficient and energy sustainable (Galatoulas, Genikomsakis and Ioakimidis 2018).
Therefore, it can be established that the new product which the management of the company is
planning to introduce is appropriate and would get demand from the consumers in the market.
Figure 1: (Size of the Industry in USA)
Source: (Grandviewresearch.com. 2019)
The above figure effectively shows that the sale of such innovative bikes or scooter has
increased over the years which shows positive response of the people towards e-scooter bikes.
The figure above shows different varieties of scooter which is introduced in the market (Wu and
Wang 2013). The above analysis also shows that sales and demand for folded scooters have
increased significantly in 2018 and the same is anticipated to increase further in the years to
come. There has been a constant demand for change and modernization in automobile industry
(Kumar and Rahman 2016). This has led to development of new and innovative products in the
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7PROJECT MANAGEMENT
market which has attracted the attention of the customers (Paetz et al. 2013). It is to be noted that
development of such scooters has required significant investment in innovative approach and
also development of energy efficient battery so that the new vehicles can meet transport
requirements of the customers. In addition to this, the new scooters have also been efficient in
terms of energy consumption of electricity which has further enhanced the demand of the
product in the market.
The global market can be categorized by voltage into 24V, 36V, 48V, and greater than
48V. The 36V segment accounted for 62.7% of the overall revenue in 2018. The new product
has been introduced in some states with different category of voltage consumption and the same
is introduced considering the needs of the customers.
Figure 2: (Voltage Consumption of the Vehicles)
Source: (Grandviewresearch.com. 2019)
The above figure effectively shows the sales on the basis of energy consumption by the
vehicle and the figure effectively shows that the maximum sales has been achieved for 36V
market which has attracted the attention of the customers (Paetz et al. 2013). It is to be noted that
development of such scooters has required significant investment in innovative approach and
also development of energy efficient battery so that the new vehicles can meet transport
requirements of the customers. In addition to this, the new scooters have also been efficient in
terms of energy consumption of electricity which has further enhanced the demand of the
product in the market.
The global market can be categorized by voltage into 24V, 36V, 48V, and greater than
48V. The 36V segment accounted for 62.7% of the overall revenue in 2018. The new product
has been introduced in some states with different category of voltage consumption and the same
is introduced considering the needs of the customers.
Figure 2: (Voltage Consumption of the Vehicles)
Source: (Grandviewresearch.com. 2019)
The above figure effectively shows the sales on the basis of energy consumption by the
vehicle and the figure effectively shows that the maximum sales has been achieved for 36V
8PROJECT MANAGEMENT
model which shows the popularity of the product in the market which is further expected to
enhance in future (Kilian and Hennigs 2014). The main reason due to which the product is
deriving a push in the market of automobiles is because the product supports sustainability
practices and reduces the emission of carbon and greenhouse affecting gases in the atmosphere.
Therefore, the environmental factors are the major consideration as to why the government
across the globe is also supporting the e-scooter project.
Therefore, the project which is undertaken by the management of company is appropriate
considering the market prospects of the project. Therefore, it can be appropriately estimate that
the new proposal of introducing Mobile scooters in the market would attract customers and
would also lead appropriate earnings for the business (van Boven et al. 2017). In order to
properly set up the business, the management of the company needs to conduct market surveys in
order to analysis the market conditions and then invest appropriately on promotion and
advertisement of the product so that the product is well recognized when the same is introduced
in the market. The management of the company needs to follow the approaches of established e-
scooter businesses such as Bird and lime. As per the estimates which are available for both lime
and bird, the companies combined made a sale of 10 million rides in 100 cities since the year, the
product was launched. This shows that the market is favorable for the new product and therefore
the management of the company can anticipate the same sales which is achieved by bird and
lime.
model which shows the popularity of the product in the market which is further expected to
enhance in future (Kilian and Hennigs 2014). The main reason due to which the product is
deriving a push in the market of automobiles is because the product supports sustainability
practices and reduces the emission of carbon and greenhouse affecting gases in the atmosphere.
Therefore, the environmental factors are the major consideration as to why the government
across the globe is also supporting the e-scooter project.
Therefore, the project which is undertaken by the management of company is appropriate
considering the market prospects of the project. Therefore, it can be appropriately estimate that
the new proposal of introducing Mobile scooters in the market would attract customers and
would also lead appropriate earnings for the business (van Boven et al. 2017). In order to
properly set up the business, the management of the company needs to conduct market surveys in
order to analysis the market conditions and then invest appropriately on promotion and
advertisement of the product so that the product is well recognized when the same is introduced
in the market. The management of the company needs to follow the approaches of established e-
scooter businesses such as Bird and lime. As per the estimates which are available for both lime
and bird, the companies combined made a sale of 10 million rides in 100 cities since the year, the
product was launched. This shows that the market is favorable for the new product and therefore
the management of the company can anticipate the same sales which is achieved by bird and
lime.
9PROJECT MANAGEMENT
Figure 3: Sales of Scooter in Different region of USA
Source: (Medium. 2019)
The sales which is achieved for scooters which are run by electricity is shown to be much
more than Dockless bikes which shows the demand for the product in the market of USA. The
sales are shown to be maximum in Austin which shows that the preference of the consumers is
changing and they are preferring the new e-scooters which has been introduced in the market. On
the basis of these factors, it can be said that the business plan which is on introducing Mobile
Scooters would be successful in the market.
Financial Model of Case Project
The financial model of the case Project was developed with the help of the financial
projection for the company for the five-year trend period. The financial model for the company
for the trend period will be covering various projections and forecasts about the company. The .
rates, inflation projection and the life of the project. Risks and return are some important part of
Figure 3: Sales of Scooter in Different region of USA
Source: (Medium. 2019)
The sales which is achieved for scooters which are run by electricity is shown to be much
more than Dockless bikes which shows the demand for the product in the market of USA. The
sales are shown to be maximum in Austin which shows that the preference of the consumers is
changing and they are preferring the new e-scooters which has been introduced in the market. On
the basis of these factors, it can be said that the business plan which is on introducing Mobile
Scooters would be successful in the market.
Financial Model of Case Project
The financial model of the case Project was developed with the help of the financial
projection for the company for the five-year trend period. The financial model for the company
for the trend period will be covering various projections and forecasts about the company. The .
rates, inflation projection and the life of the project. Risks and return are some important part of
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10PROJECT MANAGEMENT
the financials that were taken into consideration for the proposal that will be taken by the
company for the purpose of analysis.
Assumptions
There are various assumptions that were taken by the management of the company for the
purpose of analysis. It is important that were various factors are well taken into analysis for the
purpose of preparation of the financial assets of the company (Ward 2016).
Interest Rate: Interest rate for the company will be paid for the company will do the company
for the various long-term financing. Long-term financing of the company will be in the form of
interest rate that will be paid for the long-term financing of the company. Long-term financing of
the company will be in the form of long-term bonds that will be issued by the company for
financing the assets of the company (Burns and Dewhurst 2016). The applicable interest rate on
the bonds would be around 8.50% on a per annum basis. From the viewpoint of financing, the
assets of the company the company will be on a total basis would be financing the assets of the
company.
Inflation Rate: The inflation rate for the various factors of production and the raw materials that
will be taken by the company for the purpose of incorporating the rise in the prices of raw
materials and sale of Mobile Scooter by the company. Incorporation of the inflation rate will be
done at the rate of 3.50% per annum basis.
Project Life: The project life stating the financial projections for the company was drawn for a
sum of five-years where the company has viewed that with the growing technologies and
innovation the same is expected to contribute significantly for the company. The life of the
project is for a sum of five-year, which was assumed that the same is expected to contribute
significantly for the company.
the financials that were taken into consideration for the proposal that will be taken by the
company for the purpose of analysis.
Assumptions
There are various assumptions that were taken by the management of the company for the
purpose of analysis. It is important that were various factors are well taken into analysis for the
purpose of preparation of the financial assets of the company (Ward 2016).
Interest Rate: Interest rate for the company will be paid for the company will do the company
for the various long-term financing. Long-term financing of the company will be in the form of
interest rate that will be paid for the long-term financing of the company. Long-term financing of
the company will be in the form of long-term bonds that will be issued by the company for
financing the assets of the company (Burns and Dewhurst 2016). The applicable interest rate on
the bonds would be around 8.50% on a per annum basis. From the viewpoint of financing, the
assets of the company the company will be on a total basis would be financing the assets of the
company.
Inflation Rate: The inflation rate for the various factors of production and the raw materials that
will be taken by the company for the purpose of incorporating the rise in the prices of raw
materials and sale of Mobile Scooter by the company. Incorporation of the inflation rate will be
done at the rate of 3.50% per annum basis.
Project Life: The project life stating the financial projections for the company was drawn for a
sum of five-years where the company has viewed that with the growing technologies and
innovation the same is expected to contribute significantly for the company. The life of the
project is for a sum of five-year, which was assumed that the same is expected to contribute
significantly for the company.
11PROJECT MANAGEMENT
Constraints
The constraints of the project would be in the form of various technological and resources
requirement that would be changing for the company. The operations of the company would be
operating in a competitive environment whereby changes in the field of technology and
resources requirement that would be acting as a major constraint for the company. Constraints
for the company can also be in the form of other various forms like operational issues and
technical issues that can arise from the production unit. It is necessary that the management of
the company design the operational plan and the strategic plan for the company in such a manner
that will help the company in creating overall sustainable operations for the company (McKeever
2016).
Risks
Risks are an integral part of any operations that the company undertakes and the same
can be evaluated with the help of the various operational work that are undertaken by the
company for the purpose of analysis. The operations of the company is in a very volatile
situation whereby various risks like credit risk, liquidity risks, technological risk and market risk
can significantly impact the overall risk analysis of the company (Cornwall, Vang and Hartman
2016).
Credit Risk: The credit risk arises because of failure of payment by the creditors in the form of
non-payment of the various outstanding amount for the company. The company will be selling
most of the products of the company on a credit basis as the product of the vehicle market
follows the similar technique for selling products as a fact of increasing sales and attracting more
customers for the purpose of increasing revenue for the company (Bentil and Yeomans 2016).
The cash collection period will be for a sum of 30-days whereby the company will be receiving
Constraints
The constraints of the project would be in the form of various technological and resources
requirement that would be changing for the company. The operations of the company would be
operating in a competitive environment whereby changes in the field of technology and
resources requirement that would be acting as a major constraint for the company. Constraints
for the company can also be in the form of other various forms like operational issues and
technical issues that can arise from the production unit. It is necessary that the management of
the company design the operational plan and the strategic plan for the company in such a manner
that will help the company in creating overall sustainable operations for the company (McKeever
2016).
Risks
Risks are an integral part of any operations that the company undertakes and the same
can be evaluated with the help of the various operational work that are undertaken by the
company for the purpose of analysis. The operations of the company is in a very volatile
situation whereby various risks like credit risk, liquidity risks, technological risk and market risk
can significantly impact the overall risk analysis of the company (Cornwall, Vang and Hartman
2016).
Credit Risk: The credit risk arises because of failure of payment by the creditors in the form of
non-payment of the various outstanding amount for the company. The company will be selling
most of the products of the company on a credit basis as the product of the vehicle market
follows the similar technique for selling products as a fact of increasing sales and attracting more
customers for the purpose of increasing revenue for the company (Bentil and Yeomans 2016).
The cash collection period will be for a sum of 30-days whereby the company will be receiving
12PROJECT MANAGEMENT
the expected cash flows based on the credit sales for the company. The management of the
company needs to take various courses of actions and plan not only to review the credit policy
for the company but seeing the overall financial position of the company. The company will be
taking on high credit risk for the company in the form of various goods and services that are sold
by the company on a credit basis. It is essential that the goods sold to the customers are well
accordance with the credit policy that allows easy recovery of the debt or the amount receivable
by the company from the debtors. The credit policy of the company will be allowing customers
take goods on a credit basis but the same need to be well paid within 30 days of operations for
the company.
Technological Risk: The technological risk for the company arises due to the changing
technology and operational environment under which the operations of the company will be
operating. The technological risk are some of the main factor that the company should consider,
as the same would materially affect the financial profitability of the company. The technological
risk for the company will be in the form of introduction of other vehicles and better equipped
two-wheeler that would be significantly affecting the operational work for the company. The
technological risk for the business will be the highest where the planed business model requires
intensified research and development of the various products that are being used and allocated
over the period of time for the company. Changes in the Auto Industry has been rapidly due to
complex and rapid application of various technical methods for the purpose of allocation and
getting the products. The company needs to factor in various technological factors in terms of
efficiency of the products and periodic servicing that can keep the product handy and better
utilized with the customers.
the expected cash flows based on the credit sales for the company. The management of the
company needs to take various courses of actions and plan not only to review the credit policy
for the company but seeing the overall financial position of the company. The company will be
taking on high credit risk for the company in the form of various goods and services that are sold
by the company on a credit basis. It is essential that the goods sold to the customers are well
accordance with the credit policy that allows easy recovery of the debt or the amount receivable
by the company from the debtors. The credit policy of the company will be allowing customers
take goods on a credit basis but the same need to be well paid within 30 days of operations for
the company.
Technological Risk: The technological risk for the company arises due to the changing
technology and operational environment under which the operations of the company will be
operating. The technological risk are some of the main factor that the company should consider,
as the same would materially affect the financial profitability of the company. The technological
risk for the company will be in the form of introduction of other vehicles and better equipped
two-wheeler that would be significantly affecting the operational work for the company. The
technological risk for the business will be the highest where the planed business model requires
intensified research and development of the various products that are being used and allocated
over the period of time for the company. Changes in the Auto Industry has been rapidly due to
complex and rapid application of various technical methods for the purpose of allocation and
getting the products. The company needs to factor in various technological factors in terms of
efficiency of the products and periodic servicing that can keep the product handy and better
utilized with the customers.
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13PROJECT MANAGEMENT
Market Risks: Market risks for the company arises because of the changing variable factors for
the company in the form of changing market conditions and market policies under which the
operations of the company will be taking. The growth rate of sales for the company will be
significantly dependent on various factors and policies that will be helping the company in
determining the overall profitability of the company. It is necessary to incorporate various factors
and consideration for the purpose of analysis for the company. The developed product will be
solely running on the source of electric battery so market risks in terms of changes in the policy
of government is not forecasted to severely impact the operations of the company. Macro-
economic factors like the variability in the inflation rate and the interest rates were projected and
taken into assumption while planning the financials for the company for a five-year trend period.
Cash Inflows and Cash Outflows
Cash flows for the company will be in the form of various operational activities that will
be undertaken by the company for the purpose of analysis. The cash inflows for the company
will be in the form of sales or revenue that will be generated by the company. In the initial year,
the major source for the generation of the cash inflows for the company from the operational
activities would be around $3.9 million. Cash outflows from the investing activities in the first
year for the company would be around $4.82 million and the total cash flow from financing
activities of the company would be around $9.23 million. The project viability and visibility is
well addressed with the help of the various financial projection that will be done for the
company.
Cash flows for the company would be changing constantly for the company significantly
dependent on the various activities of the company. It is essential that there are various activities
that the company should undertake for the purpose of analysis and comparison and the same
Market Risks: Market risks for the company arises because of the changing variable factors for
the company in the form of changing market conditions and market policies under which the
operations of the company will be taking. The growth rate of sales for the company will be
significantly dependent on various factors and policies that will be helping the company in
determining the overall profitability of the company. It is necessary to incorporate various factors
and consideration for the purpose of analysis for the company. The developed product will be
solely running on the source of electric battery so market risks in terms of changes in the policy
of government is not forecasted to severely impact the operations of the company. Macro-
economic factors like the variability in the inflation rate and the interest rates were projected and
taken into assumption while planning the financials for the company for a five-year trend period.
Cash Inflows and Cash Outflows
Cash flows for the company will be in the form of various operational activities that will
be undertaken by the company for the purpose of analysis. The cash inflows for the company
will be in the form of sales or revenue that will be generated by the company. In the initial year,
the major source for the generation of the cash inflows for the company from the operational
activities would be around $3.9 million. Cash outflows from the investing activities in the first
year for the company would be around $4.82 million and the total cash flow from financing
activities of the company would be around $9.23 million. The project viability and visibility is
well addressed with the help of the various financial projection that will be done for the
company.
Cash flows for the company would be changing constantly for the company significantly
dependent on the various activities of the company. It is essential that there are various activities
that the company should undertake for the purpose of analysis and comparison and the same
14PROJECT MANAGEMENT
would be evaluated for the purpose of comparison. The outflow for cash for the company would
be in the form of expenses that will be on the basis of overhead or fixed cost for the company or
other variable expenses. The cost for making the product is high in the initial stage but as soon as
the sales of the company grows and the technological advancement for the product will be seen
thereby driving economic benefits in the form of optimum utilisation of resources. The cash
inflows or the growth of the revenue for the purpose of the financial projection for the company
was taken at 5% but it is to be noted that the same can be variable in nature if things changes for
the company. The management of the company anticipates that the new product would be attract
the attention of the customers and especially the teenagers due to the various features which is
offered by the product (Riggs 2018). It is also anticipated by the management of the company
that the product would also appeal to the working class as the same will be portable and easy to
fit in small spaces and even carry the same at work.
The global electric scooters market size was valued at USD 17.43 billion in 2018 and is
projected to witness a CAGR of 6.5% during the forecast period. Declining costs of batteries are
also expected to create favorable opportunities for companies. Moreover, e-scooters are fuel-
efficient, eco-friendly, easy to handle, and compact in size, which is also boosting their demand
and the cash flows of the company.
would be evaluated for the purpose of comparison. The outflow for cash for the company would
be in the form of expenses that will be on the basis of overhead or fixed cost for the company or
other variable expenses. The cost for making the product is high in the initial stage but as soon as
the sales of the company grows and the technological advancement for the product will be seen
thereby driving economic benefits in the form of optimum utilisation of resources. The cash
inflows or the growth of the revenue for the purpose of the financial projection for the company
was taken at 5% but it is to be noted that the same can be variable in nature if things changes for
the company. The management of the company anticipates that the new product would be attract
the attention of the customers and especially the teenagers due to the various features which is
offered by the product (Riggs 2018). It is also anticipated by the management of the company
that the product would also appeal to the working class as the same will be portable and easy to
fit in small spaces and even carry the same at work.
The global electric scooters market size was valued at USD 17.43 billion in 2018 and is
projected to witness a CAGR of 6.5% during the forecast period. Declining costs of batteries are
also expected to create favorable opportunities for companies. Moreover, e-scooters are fuel-
efficient, eco-friendly, easy to handle, and compact in size, which is also boosting their demand
and the cash flows of the company.
15PROJECT MANAGEMENT
Particulars Year 1 Year 2 Year 3 Year 4 Year 5
Inflation Rate 3.50% 3.50% 3.50% 3.50%
Sales Growth Rate 6.50% 6.50% 6.50% 6.50%
Sales Volume 5000 5325 5671.125 6040 6432
Selling Price Per Unit $3,300 $3,416 $3,535 $3,659 $3,787
Total Sales Revenue $1,65,00,000 $1,81,87,538 $2,00,47,668 $2,20,98,043 $2,43,58,120
Cost of Good Sold per unit:
Raw Material Consumed ($1,200) ($1,242) ($1,285) ($1,330) ($1,377)
Direct Labor Cost ($750) ($776) ($803) ($832) ($861)
Total Cost of Goods Sold p.u. ($1,950) ($2,018) ($2,089) ($2,162) ($2,238)
Total Cost of Goods Sold ($97,50,000) ($1,07,47,181) ($1,18,46,349) ($1,30,57,935) ($1,43,93,435)
GROSS PROFIT $67,50,000 $74,40,356 $82,01,319 $90,40,109 $99,64,686
Variable Manufacturing Overhead
p.u ($250) ($259) ($268) ($277) ($287)
Variable Manufacturing
Overhead ($12,50,000) ($13,77,844) ($15,18,763) ($16,74,094) ($18,45,312)
Dep. on Plant & Equipment ($4,90,000) ($4,90,000) ($4,90,000) ($4,90,000) ($4,90,000)
Total Manufacturing Overhead ($17,40,000) ($18,67,844) ($20,08,763) ($21,64,094) ($23,35,312)
General Administrative
Expenses:
Depreciation on Furniture &
Fixtures ($10,000) ($9,000) ($8,100) ($7,290) ($6,561)
Depreciation on Computer
Equipment ($60,000) ($52,800) ($46,464) ($40,888) ($35,982)
Amortization of Patent ($20,000) ($20,000) ($20,000) ($20,000) ($20,000)
Amortization of Trademark ($20,000) ($20,000) ($20,000) ($20,000) ($20,000)
Insurance ($7,000) ($7,245) ($7,499) ($7,761) ($8,033)
Rates & Taxes ($5,500) ($5,693) ($5,892) ($6,098) ($6,311)
Salary of Office Staffs ($90,000) ($93,150) ($96,410) ($99,785) ($1,03,277)
Cleaning Charges ($4,500) ($4,658) ($4,821) ($4,989) ($5,164)
Particulars Year 1 Year 2 Year 3 Year 4 Year 5
Inflation Rate 3.50% 3.50% 3.50% 3.50%
Sales Growth Rate 6.50% 6.50% 6.50% 6.50%
Sales Volume 5000 5325 5671.125 6040 6432
Selling Price Per Unit $3,300 $3,416 $3,535 $3,659 $3,787
Total Sales Revenue $1,65,00,000 $1,81,87,538 $2,00,47,668 $2,20,98,043 $2,43,58,120
Cost of Good Sold per unit:
Raw Material Consumed ($1,200) ($1,242) ($1,285) ($1,330) ($1,377)
Direct Labor Cost ($750) ($776) ($803) ($832) ($861)
Total Cost of Goods Sold p.u. ($1,950) ($2,018) ($2,089) ($2,162) ($2,238)
Total Cost of Goods Sold ($97,50,000) ($1,07,47,181) ($1,18,46,349) ($1,30,57,935) ($1,43,93,435)
GROSS PROFIT $67,50,000 $74,40,356 $82,01,319 $90,40,109 $99,64,686
Variable Manufacturing Overhead
p.u ($250) ($259) ($268) ($277) ($287)
Variable Manufacturing
Overhead ($12,50,000) ($13,77,844) ($15,18,763) ($16,74,094) ($18,45,312)
Dep. on Plant & Equipment ($4,90,000) ($4,90,000) ($4,90,000) ($4,90,000) ($4,90,000)
Total Manufacturing Overhead ($17,40,000) ($18,67,844) ($20,08,763) ($21,64,094) ($23,35,312)
General Administrative
Expenses:
Depreciation on Furniture &
Fixtures ($10,000) ($9,000) ($8,100) ($7,290) ($6,561)
Depreciation on Computer
Equipment ($60,000) ($52,800) ($46,464) ($40,888) ($35,982)
Amortization of Patent ($20,000) ($20,000) ($20,000) ($20,000) ($20,000)
Amortization of Trademark ($20,000) ($20,000) ($20,000) ($20,000) ($20,000)
Insurance ($7,000) ($7,245) ($7,499) ($7,761) ($8,033)
Rates & Taxes ($5,500) ($5,693) ($5,892) ($6,098) ($6,311)
Salary of Office Staffs ($90,000) ($93,150) ($96,410) ($99,785) ($1,03,277)
Cleaning Charges ($4,500) ($4,658) ($4,821) ($4,989) ($5,164)
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16PROJECT MANAGEMENT
Electricity for Office ($8,000) ($8,280) ($8,570) ($8,870) ($9,180)
Telephone & Internet ($5,000) ($5,175) ($5,356) ($5,544) ($5,738)
Total General Expenses ($2,30,000) ($2,26,000) ($2,23,111) ($2,21,224) ($2,20,245)
Selling & Marketing Expenses:
Depreciation on Motor Vehicle ($60,000) ($52,800) ($46,464) ($40,888) ($35,982)
Salary of Marketing Staffs ($1,50,000) ($1,55,250) ($1,60,684) ($1,66,308) ($1,72,128)
Sales Commissions @0.5% on
Sales ($82,500) ($90,938) ($1,00,238) ($1,10,490) ($1,21,791)
Travelling charges @0.25% on
Sales ($41,250) ($45,469) ($50,119) ($55,245) ($60,895)
Total Selling Expenses ($3,33,750) ($3,44,457) ($3,57,505) ($3,72,931) ($3,90,796)
Net Operating Profit/(Loss) $44,46,250 $50,02,056 $56,11,940 $62,81,859 $70,18,332
Interest Expenses:
Interest on Bond ($2,16,299) ($2,16,299) ($2,16,299) ($2,16,299) ($2,16,299)
Interest on Loan From Bank ($1,52,681) ($1,52,681) ($1,52,681) ($1,52,681) ($1,52,681)
Total Interest Expenses ($3,68,980) ($3,68,980) ($3,68,980) ($3,68,980) ($3,68,980)
Net Profit before Tax $40,77,270 $46,33,076 $52,42,960 $59,12,879 $66,49,352
Income Tax Expenses ($12,23,181) ($13,89,923) ($15,72,888) ($17,73,864) ($19,94,806)
Net Profit after Tax $28,54,089 $32,43,153 $36,70,072 $41,39,015 $46,54,546
Gross Profit Margin 40.91% 40.91% 40.91% 40.91% 40.91%
Net Profit Margin 17.30% 17.83% 18.31% 18.73% 19.11%
Return on Equity 44.86% 50.98% 57.69% 65.06% 73.16%
Financial and Sensitivity Analysis
Financial Analysis for the project was done thereby taking various factors and
considerations into account for the company. The financial analysis for the company will be
done by taking the profitability profile, breakeven analysis and sensitivity analysis for the
Electricity for Office ($8,000) ($8,280) ($8,570) ($8,870) ($9,180)
Telephone & Internet ($5,000) ($5,175) ($5,356) ($5,544) ($5,738)
Total General Expenses ($2,30,000) ($2,26,000) ($2,23,111) ($2,21,224) ($2,20,245)
Selling & Marketing Expenses:
Depreciation on Motor Vehicle ($60,000) ($52,800) ($46,464) ($40,888) ($35,982)
Salary of Marketing Staffs ($1,50,000) ($1,55,250) ($1,60,684) ($1,66,308) ($1,72,128)
Sales Commissions @0.5% on
Sales ($82,500) ($90,938) ($1,00,238) ($1,10,490) ($1,21,791)
Travelling charges @0.25% on
Sales ($41,250) ($45,469) ($50,119) ($55,245) ($60,895)
Total Selling Expenses ($3,33,750) ($3,44,457) ($3,57,505) ($3,72,931) ($3,90,796)
Net Operating Profit/(Loss) $44,46,250 $50,02,056 $56,11,940 $62,81,859 $70,18,332
Interest Expenses:
Interest on Bond ($2,16,299) ($2,16,299) ($2,16,299) ($2,16,299) ($2,16,299)
Interest on Loan From Bank ($1,52,681) ($1,52,681) ($1,52,681) ($1,52,681) ($1,52,681)
Total Interest Expenses ($3,68,980) ($3,68,980) ($3,68,980) ($3,68,980) ($3,68,980)
Net Profit before Tax $40,77,270 $46,33,076 $52,42,960 $59,12,879 $66,49,352
Income Tax Expenses ($12,23,181) ($13,89,923) ($15,72,888) ($17,73,864) ($19,94,806)
Net Profit after Tax $28,54,089 $32,43,153 $36,70,072 $41,39,015 $46,54,546
Gross Profit Margin 40.91% 40.91% 40.91% 40.91% 40.91%
Net Profit Margin 17.30% 17.83% 18.31% 18.73% 19.11%
Return on Equity 44.86% 50.98% 57.69% 65.06% 73.16%
Financial and Sensitivity Analysis
Financial Analysis for the project was done thereby taking various factors and
considerations into account for the company. The financial analysis for the company will be
done by taking the profitability profile, breakeven analysis and sensitivity analysis for the
17PROJECT MANAGEMENT
project. Various other tools like evaluating the project from the capital budgeting perspective
will also be taken into consideration. It is essential that the project designed for the purpose of
investment should be profitable for the various capital funding sources like debt and equity
sources of a company. Return on equity, net profit margin and operating margin of the business
were some of the key ratio that were conducted for evaluating the overall financial viability of
the business in the five-year trend period.
Financial Analysis
The financial analysis for the company was drawn for the company for the sum of five-
period whereby the financial projection for the company was drawn thereby assessing the
profitability of the company. The financial analysis for the company was drawn thereby
analysing the financial trend for the company whereby the company summarised the start-up cost
that would be required by the company for carrying on the operations of the company. The assets
of the company would be classified under non-current or fixed assets of the company or the
current assets of the company. The net profitability for the company for the first year would be
around $2.85 million and the same is expected to grow continuously for the company for a sum
of five-year period (Gummesson 2015). The financial ratio analysis for the company depicting
the profitability of the company could be well reflected as below:
Ratio Analysis
Particulars Year 1 Year 2 Year 3 Year 4 Year 5
Gross Profit Margin 40.91% 40.91% 40.91% 40.91% 40.91%
Net Profit Margin 17.30% 17.83% 18.31% 18.73% 19.11%
Return on Equity 44.86% 50.98% 57.69% 65.06% 73.16%
project. Various other tools like evaluating the project from the capital budgeting perspective
will also be taken into consideration. It is essential that the project designed for the purpose of
investment should be profitable for the various capital funding sources like debt and equity
sources of a company. Return on equity, net profit margin and operating margin of the business
were some of the key ratio that were conducted for evaluating the overall financial viability of
the business in the five-year trend period.
Financial Analysis
The financial analysis for the company was drawn for the company for the sum of five-
period whereby the financial projection for the company was drawn thereby assessing the
profitability of the company. The financial analysis for the company was drawn thereby
analysing the financial trend for the company whereby the company summarised the start-up cost
that would be required by the company for carrying on the operations of the company. The assets
of the company would be classified under non-current or fixed assets of the company or the
current assets of the company. The net profitability for the company for the first year would be
around $2.85 million and the same is expected to grow continuously for the company for a sum
of five-year period (Gummesson 2015). The financial ratio analysis for the company depicting
the profitability of the company could be well reflected as below:
Ratio Analysis
Particulars Year 1 Year 2 Year 3 Year 4 Year 5
Gross Profit Margin 40.91% 40.91% 40.91% 40.91% 40.91%
Net Profit Margin 17.30% 17.83% 18.31% 18.73% 19.11%
Return on Equity 44.86% 50.98% 57.69% 65.06% 73.16%
18PROJECT MANAGEMENT
Sensitivity Analysis
The sensitivity analysis for the company will be done for the company by taking up the
sensitive factor like the variability in the inflation rate, growth rate of the company and the
weighted average cost of capital for the company. It is important to consider various changes and
possibilities that might occur in the business if there is a significant changes in the factor rate of
the company (Dale 2019). The financial projection of the company is done by taking various
important growth factors like the sales growth rate or the overall growth rate of the firm which
determines the extent of the growth of the company in terms of profitability for the company.
Capital Budgeting
Capital Budgeting is done for assessing the financial viability of the project in terms of
the overall success or failure of the company. The key factor that would be taken for the purpose
of consideration for the evaluation of the financial statement of the company will be the discount
rate of the project. The discount rate shows the required rate of return by the capital funding
sources that the company applies for the purpose of funding the same in the project (Lee et al.,
2015). The investment done by the company for acquiring the non-current assets of the company
would be taken as the initial cash outflows and the net operating cash flows plus depreciation
would be taken as net operating cash flows for the company. The discount rate taken for the
purpose of analysis was 8.50% which was used for assessing the present value and applying the
concepts of the time value of money for getting a net present value of $25.18 million and the
IRR of the project being around 53% (Cramer 2017). The net present value of the project was
greater than zero stating that the profitability generated from the project is higher than what is
required by the equity shareholders of the company.
Sensitivity Analysis
The sensitivity analysis for the company will be done for the company by taking up the
sensitive factor like the variability in the inflation rate, growth rate of the company and the
weighted average cost of capital for the company. It is important to consider various changes and
possibilities that might occur in the business if there is a significant changes in the factor rate of
the company (Dale 2019). The financial projection of the company is done by taking various
important growth factors like the sales growth rate or the overall growth rate of the firm which
determines the extent of the growth of the company in terms of profitability for the company.
Capital Budgeting
Capital Budgeting is done for assessing the financial viability of the project in terms of
the overall success or failure of the company. The key factor that would be taken for the purpose
of consideration for the evaluation of the financial statement of the company will be the discount
rate of the project. The discount rate shows the required rate of return by the capital funding
sources that the company applies for the purpose of funding the same in the project (Lee et al.,
2015). The investment done by the company for acquiring the non-current assets of the company
would be taken as the initial cash outflows and the net operating cash flows plus depreciation
would be taken as net operating cash flows for the company. The discount rate taken for the
purpose of analysis was 8.50% which was used for assessing the present value and applying the
concepts of the time value of money for getting a net present value of $25.18 million and the
IRR of the project being around 53% (Cramer 2017). The net present value of the project was
greater than zero stating that the profitability generated from the project is higher than what is
required by the equity shareholders of the company.
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19PROJECT MANAGEMENT
Selection of Best Alternative
The financial viability and analysis for the company showed that the company can
generated significant positive cash flows for the company. However there are differences and
constraints that can arise in the form of operational and technological threat/risks that can affect
the operations of the company. Thus, it is required that the company deploys various strategies
and plan for solving the same and taking for the purpose of evaluation of other best sources for
the company (Ward 2016).
Selection of Best Alternative
The financial viability and analysis for the company showed that the company can
generated significant positive cash flows for the company. However there are differences and
constraints that can arise in the form of operational and technological threat/risks that can affect
the operations of the company. Thus, it is required that the company deploys various strategies
and plan for solving the same and taking for the purpose of evaluation of other best sources for
the company (Ward 2016).
20PROJECT MANAGEMENT
References
Arjaliès, D.L. and Mundy, J., 2013. The use of management control systems to manage CSR
strategy: A levers of control perspective. Management Accounting Research, 24(4), pp.284-300.
Bentil, J. and Yeomans, J., 2016. Technical and financial analysis for the implementation of a
sustainable poultry farm in Takoradi, Ghana (No. PG 59 2016).
Bethune, K., 2017. Connected by Design. Design Management Review, 28(1), pp.22-27.
Brauer, B., Ebermann, C., Hildebrandt, B., Remané, G. and Kolbe, L.M., 2016, June. Green by
App: the Contribution of Mobile Applications to Environmental Sustainability. In PACIS(p.
220).
Burns, P. and Dewhurst, J. eds., 2016. Small business and entrepreneurship. Macmillan
International Higher Education.
Cornwall, J.R., Vang, D.O. and Hartman, J.M., 2016. Entrepreneurial financial management: An
applied approach. Routledge.
Cramer, J., 2017. Corporate Social Responsibility and Globalisation: an action plan for
business. Routledge.
Dale, B., 2019. One Shot Pub: A Business Plan.
Fawcett, C.R., Barboza, D., Gasvoda, H.L. and Bernier, M.D., 2018. Analyzing Rideshare
Bicycles and Scooters.
Galatoulas, N.F., Genikomsakis, K.N. and Ioakimidis, C.S., 2018. Analysis of potential demand
and costs for the business development of an electric vehicle sharing service. Sustainable Cities
and Society, 42, pp.148-161.
Garche, J., Karden, E., Moseley, P.T. and Rand, D.A. eds., 2017. Lead-acid batteries for future
automobiles. Elsevier.
References
Arjaliès, D.L. and Mundy, J., 2013. The use of management control systems to manage CSR
strategy: A levers of control perspective. Management Accounting Research, 24(4), pp.284-300.
Bentil, J. and Yeomans, J., 2016. Technical and financial analysis for the implementation of a
sustainable poultry farm in Takoradi, Ghana (No. PG 59 2016).
Bethune, K., 2017. Connected by Design. Design Management Review, 28(1), pp.22-27.
Brauer, B., Ebermann, C., Hildebrandt, B., Remané, G. and Kolbe, L.M., 2016, June. Green by
App: the Contribution of Mobile Applications to Environmental Sustainability. In PACIS(p.
220).
Burns, P. and Dewhurst, J. eds., 2016. Small business and entrepreneurship. Macmillan
International Higher Education.
Cornwall, J.R., Vang, D.O. and Hartman, J.M., 2016. Entrepreneurial financial management: An
applied approach. Routledge.
Cramer, J., 2017. Corporate Social Responsibility and Globalisation: an action plan for
business. Routledge.
Dale, B., 2019. One Shot Pub: A Business Plan.
Fawcett, C.R., Barboza, D., Gasvoda, H.L. and Bernier, M.D., 2018. Analyzing Rideshare
Bicycles and Scooters.
Galatoulas, N.F., Genikomsakis, K.N. and Ioakimidis, C.S., 2018. Analysis of potential demand
and costs for the business development of an electric vehicle sharing service. Sustainable Cities
and Society, 42, pp.148-161.
Garche, J., Karden, E., Moseley, P.T. and Rand, D.A. eds., 2017. Lead-acid batteries for future
automobiles. Elsevier.
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22PROJECT MANAGEMENT
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profitability, and family leadership. Springer.
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23PROJECT MANAGEMENT
Appendix
1) Break-even Analysis
Particulars Year 1 Year 2 Year 3 Year 4 Year 5
Selling Price per unit $3,300 $3,416 $3,535 $3,659 $3,787
Toatl Variable Costs per Unit ($2,241) ($2,320) ($2,401) ($2,485) ($2,572)
Contribution Margin $1,059 $1,096 $1,134 $1,174 $1,215
Total Fixed Costs $14,57,960 $14,53,960 $14,51,071 $14,49,185 $14,48,206
Break-Even in Units 1377 1327 1279 1235 1192
Break-Even in Dollars $45,44,291 $45,31,824 $45,22,819 $45,16,939 $45,13,888
2) Sensitivity Analysis
Particulars 2% 2.50% 3.50% 5% 7% 9% 6.50% 9.94% 10.50%
Av.Gross Profit Margin 28.57% 40.91% 28.57% 28.57% 40.91% 28.57% 28.57% 40.91% 28.57%
Av.Net Profit Margin 3.61% 18.26% 3.68% 3.54% 18.26% 3.73% 3.64% 18.26% 3.64%
Av.Return on Equity 16.11% 58.35% 17.02% 15.26% 58.35% 17.61% 16.41% 58.35% 16.41%
NPV 34188644 25177932 36484023 32028539 25177932 37975672 44657992 25177932 27784904
IRR 9.64% 53.60% 10.22% 9.10% 53.60% 10.58% 12.11% 53.60% 8.05%
ARR 7.25% 35.01% 7.66% 6.87% 35.01% 7.92% 7.38% 35.01% 7.38%
Protability Index 40.30% 237.46% 43.00% 37.75% 237.46% 44.76% 52.64% 237.46% 32.75%
Inflation Rate Growth Rate (Average) WACC
SENSITIVITY ANALYSIS:-
Appendix
1) Break-even Analysis
Particulars Year 1 Year 2 Year 3 Year 4 Year 5
Selling Price per unit $3,300 $3,416 $3,535 $3,659 $3,787
Toatl Variable Costs per Unit ($2,241) ($2,320) ($2,401) ($2,485) ($2,572)
Contribution Margin $1,059 $1,096 $1,134 $1,174 $1,215
Total Fixed Costs $14,57,960 $14,53,960 $14,51,071 $14,49,185 $14,48,206
Break-Even in Units 1377 1327 1279 1235 1192
Break-Even in Dollars $45,44,291 $45,31,824 $45,22,819 $45,16,939 $45,13,888
2) Sensitivity Analysis
Particulars 2% 2.50% 3.50% 5% 7% 9% 6.50% 9.94% 10.50%
Av.Gross Profit Margin 28.57% 40.91% 28.57% 28.57% 40.91% 28.57% 28.57% 40.91% 28.57%
Av.Net Profit Margin 3.61% 18.26% 3.68% 3.54% 18.26% 3.73% 3.64% 18.26% 3.64%
Av.Return on Equity 16.11% 58.35% 17.02% 15.26% 58.35% 17.61% 16.41% 58.35% 16.41%
NPV 34188644 25177932 36484023 32028539 25177932 37975672 44657992 25177932 27784904
IRR 9.64% 53.60% 10.22% 9.10% 53.60% 10.58% 12.11% 53.60% 8.05%
ARR 7.25% 35.01% 7.66% 6.87% 35.01% 7.92% 7.38% 35.01% 7.38%
Protability Index 40.30% 237.46% 43.00% 37.75% 237.46% 44.76% 52.64% 237.46% 32.75%
Inflation Rate Growth Rate (Average) WACC
SENSITIVITY ANALYSIS:-
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