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:
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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
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).
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.
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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).
5PROJECT MANAGEMENT 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. The product would help the management of the company to appropriately follow corporate social responsibilities of the business. 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
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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
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.
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
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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 thevarious 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
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.
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13PROJECT MANAGEMENT Market Risks:Market risks for the company arises because of the changing variable factors for the companyin the formofchanging market conditions andmarket 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.
15PROJECT MANAGEMENT ParticularsYear 1Year 2Year 3Year 4Year 5 Inflation Rate3.50%3.50%3.50%3.50% Sales Growth Rate6.50%6.50%6.50%6.50% Sales Volume500053255671.12560406432 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 Margin40.91%40.91%40.91%40.91%40.91% Net Profit Margin17.30%17.83%18.31%18.73%19.11% Return on Equity44.86%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 ParticularsYear 1Year 2Year 3Year 4Year 5 Gross Profit Margin40.91%40.91%40.91%40.91%40.91% Net Profit Margin17.30%17.83%18.31%18.73%19.11% Return on Equity44.86%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.
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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).
21PROJECT MANAGEMENT Gopal, P.R.C. and Thakkar, J., 2016. Sustainable supply chain practices: an empirical investigation on Indian automobile industry.Production Planning & Control,27(1), pp.49-64. Grandviewresearch.com. (2019).Electric Scooters Market Size & Share | Industry Report, 2019- 2030. [online] Available at: https://www.grandviewresearch.com/industry-analysis/electric- scooters-market [Accessed 30 Apr. 2019]. Gummesson, E., 2015. Return on Relationships (Ror): Financial Aspects of Relationship Marketing and Crm in a Business-To-Business Context. InCreating and Delivering Value in Marketing(pp. 43-47). Springer, Cham. Kilian, T. and Hennigs, N., 2014. Corporate social responsibility and environmental reporting in controversial industries.European Business Review,26(1), pp.79-101. Kumar, D. and Rahman, Z., 2016. Buyer supplier relationship and supply chain sustainability: empirical study of Indian automobile industry.Journal of Cleaner Production,131, pp.836-848. Lee, Y.K., Kim, S.H., Seo, M.K. and Hight, S.K., 2015. Market orientation and business performance: Evidence from franchising industry.International Journal of Hospitality Management,44, pp.28-37. Luthra, S., Garg, D. and Haleem, A., 2015. Critical success factors of green supply chain management for achieving sustainability in Indian automobile industry.Production Planning & Control,26(5), pp.339-362. McKeever, M., 2016.How to write a business plan. Nolo. Medium. (2019).Scooters for Sustainable Suburbs: The social, environmental, and business Case for scaling…. [online] Available at: https://medium.com/@bonghipster/scooters-for- sustainable-suburbs-the-social-environmental-and-business-case-for-scaling-56fe305c128c [Accessed 30 Apr. 2019].
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22PROJECT MANAGEMENT Nocerino, R., Colorni, A., Lia, F. and Luè, A., 2016. E-bikes and E-scooters for smart logistics: environmental and economic sustainability in pro-E-bike Italian pilots.Transportation research procedia,14, pp.2362-2371. Paetz, A.G., Kaschub, T., Jochem, P. and Fichtner, W., 2013, May. Load-shifting potentials in households including electric mobility-A comparison of user behaviour with modelling results. In2013 10th International Conference on the European Energy Market (EEM)(pp. 1-7). IEEE. Requardt, E.M., 2017. ESF e-Bike Initiative at SUNY College of Environmental Science and Forestry. Riggs, W., 2018. Time for action in the era of disruptive transport.Disruptive Transport: Driverless Cars, Transport Innovation and the Sustainable City of Tomorrow. Roda, M., Giorgi, D., Joime, G.P., Anniballi, L., London, M., Paschero, M. and Mascioli, F.M.F., 2017, September. An integrated methodology model for smart mobility system applied to sustainable tourism. In2017 IEEE 3rd International Forum on Research and Technologies for Society and Industry (RTSI)(pp. 1-6). IEEE. van Boven, J.F., Le An, P., Kirenga, B.J. and Chavannes, N.H., 2017. Electric scooters: batteries in the battle against ambient air pollution?.The Lancet Planetary Health,1(5), pp.e168-e169. Ward, J., 2016.Keeping the family business healthy: How to plan for continuing growth, profitability, and family leadership. Springer. Wu, H.C. and Wang, P.W., 2013. Facilities and service models for electric scooter recharge stations.MIS REVIEW: An International Journal,18(2), pp.1-18. Zuev, D., 2018. The Smart Ways Forward for the Electric Two-Wheeler. InUrban Mobility in Modern China(pp. 97-110). Palgrave Macmillan, Cham.
23PROJECT MANAGEMENT Appendix 1) Break-even Analysis ParticularsYear 1Year 2Year 3Year 4Year 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 Units13771327127912351192 Break-Even in Dollars$45,44,291$45,31,824$45,22,819$45,16,939$45,13,888 2) Sensitivity Analysis Particulars2%2.50%3.50%5%7%9%6.50%9.94%10.50% Av.Gross Profit Margin28.57%40.91%28.57%28.57%40.91%28.57%28.57%40.91%28.57% Av.Net Profit Margin3.61%18.26%3.68%3.54%18.26%3.73%3.64%18.26%3.64% Av.Return on Equity16.11%58.35%17.02%15.26%58.35%17.61%16.41%58.35%16.41% NPV341886442517793236484023320285392517793237975672446579922517793227784904 IRR9.64%53.60%10.22%9.10%53.60%10.58%12.11%53.60%8.05% ARR7.25%35.01%7.66%6.87%35.01%7.92%7.38%35.01%7.38% Protability Index40.30%237.46%43.00%37.75%237.46%44.76%52.64%237.46%32.75% Inflation RateGrowth Rate (Average)WACC SENSITIVITY ANALYSIS:-