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Purchase and Maintain Its Own Fleet of Cars: Alternative Proposals

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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chirag shah
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95 views2 pages

Purchase and Maintain Its Own Fleet of Cars: Alternative Proposals

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.

Uploaded by

chirag shah
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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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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