Cost Benefit Analysis: Tesla vs. BMW for Employee Vehicles

This report presents a cost-benefit analysis for CHL Health Pty Ltd, evaluating the economic viability of providing company-sponsored vehicles to employees as a motivational strategy. The analysis compares two luxury car options: the Tesla Model X 100D, chosen for its environmental sustainability, and the BMW 6 Series 640i X drive, selected for its potential cost efficiency. The report utilizes hypothetical data, including discount rates, inflation, and operating costs, to calculate Net Present Value (NPV) and Equivalent Annual Cost (EAA) for both vehicles over a five-year period. A sensitivity analysis assesses the impact of varying discount rates on the financial outcomes. The findings indicate that while the Tesla offers environmental benefits, the BMW presents a more economically viable option for the company, particularly when considering NPV and EAA, leading to the recommendation of the BMW as the preferred choice.