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    Purchase and Maintain Its Own Fleet of Cars: Alternative Proposals

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    chirag shah
    The document compares the costs of 3 options for a company's transportation needs: maintaining their own fleet of cars, using employee-owned cars, or hiring cars. It lists the annual costs per km associated with depreciation, insurance, taxes, petrol, repairs, tires, and total costs. Based on the total costs per km and an estimated annual distance of 20,000 km, it then ranks the options from lowest to highest total annual cost, with using employee-owned cars as the most cost effective option.

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    Purchase and Maintain Its Own Fleet of Cars: Alternative Proposals

    Uploaded by

    chirag shah
    33 views2 pages
    The document compares the costs of 3 options for a company's transportation needs: maintaining their own fleet of cars, using employee-owned cars, or hiring cars. It lists the annual costs per km associated with depreciation, insurance, taxes, petrol, repairs, tires, and total costs. Based on the total costs per km and an estimated annual distance of 20,000 km, it then ranks the options from lowest to highest total annual cost, with using employee-owned cars as the most cost effective option.

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    The document compares the costs of 3 options for a company's transportation needs: maintaining their own fleet of cars, using employee-owned cars, or hiring cars. It lists the annual costs per km associated with depreciation, insurance, taxes, petrol, repairs, tires, and total costs. Based on the total costs per km and an estimated annual distance of 20,000 km, it then ranks the options from lowest to highest total annual cost, with using employee-owned cars as the most cost effective option.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    33 views2 pages

    Purchase and Maintain Its Own Fleet of Cars: Alternative Proposals

    Uploaded by

    chirag shah
    The document compares the costs of 3 options for a company's transportation needs: maintaining their own fleet of cars, using employee-owned cars, or hiring cars. It lists the annual costs per km associated with depreciation, insurance, taxes, petrol, repairs, tires, and total costs. Based on the total costs per km and an estimated annual distance of 20,000 km, it then ranks the options from lowest to highest total annual cost, with using employee-owned cars as the most cost effective option.

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    Particulars Alternative Proposals

    I II III
    Purchase and maintain its Use of Use of
    own fleet of cars Own Car Hire Car
    (employee
    )

    Reimbursement or Hire Charges - 4.8 3

    Depreciation (3,0000-60,000) /5 48000 2.4


    Insurance 3600 0.18 0.18 -
    Taxes 2400 0.12 0.12

    Petrol 1.8 1.8


    Repair and Maintenance 0.6 - -
    Tyre 0.36 0.36

    Total Cost per km 5.46 4.98 5.28

    Cost for 20,000 kms 109200 99600 105600


    III I II
    Ranking
    ls

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