Engineering Economics

Assignment

Batch 2022

Section CV-

C Submitted

by

ZAINAB FATIMA 22l-7079

Submitted to

Sir Abdul Rehman

DEPARTMENT OF CIVIL ENGINEERING

NATIONAL UNIVERSITY OF COMPUTER AND EMERGING SCIENCES,
LAHORE
 1. Initial Setup and Calculations:

The initial investment for the project is Rs. 29,650,000,000.

i. Daily ridership: 180,000 passengers

ii. Ticket fare: Rs. 20
iii. Monthly revenue:
iv. 180,000 passengers/day×30
days/month×𝑅𝑠.20=𝑅𝑠.108,000,000180,000 passengers/day×30
days/month× Rs.20=Rs.108,000,000

v. Annual ticket revenue:

𝑅𝑠.108,000,000×12=𝑅𝑠.1,314,000,000Rs.108,000,000×12=Rs.1,314,000,0
00

Rate of returns for sensitivity analysis = 6%, 8%,10%

For project life cycle:
Sum of the last three digits of your roll number = 0+7+9 = 16
Project life cycle = n = 10+16 = 26
Analysis on years ranging from 2014-2040
(26+14 = 40)

 Subsidy:
a) Subsidy per ticket: Rs. 40
b) Annual subsidy:
c) 180,000 passengers/day×30
days/month×𝑅𝑠.40×12=𝑅𝑠.2,628,000,000180,000 passengers/day×30 days/m
onth×Rs.40×12=Rs.2,628,000,000
 Total Revenue:

 Total annual revenue = Ticket revenue + Subsidy = Rs. 1,314,000,000

+ Rs. 2,628,000,000 = Rs. 3,942,000,000
3. Cost Calculations:

Given Data
Fleet Of Busses 66
Track Length (Km) 28.7
 Fare (PKR) 20
Subsidy (PKR) 40
Passenger per hour (2014
Assumed - 2021)
Data 10,000
Expenses Passenger
Qty per hour (2021 - )
Pay/Amount Year Total 20000
Officers %45Rate Of Return
49430 2014 2224350 6
Staff %
957Rate Of Return
25000 2014 23925000 8
Electricity %29Rate Of Return
30000 2014-17 870000 10
ElectricitySum of last293 digits of45000
your Roll No. 2018-20 1305000 16
Check Sum Condition w.r.t Roll
Electricity 29 No. sum 60000 2021-23 1740000
Bus Maintenence Condition
66 Factor
480000 Per Anum 31680000 10
Diesel Project Life Cycle
891000 122 2014 10870200026
Diesel 891000 88 2015 78408000
Diesel 891000 76 2016 67716000
Diesel 891000 76 2017 67716000
Diesel 891000 110 2018 98010000
Diesel 891000 125 2019 111375000
Diesel 891000 112 2020 99792000
Diesel 891000 137 2021 122067000
Diesel 891000 228 2022 203148000
Diesel 891000 330 2023 294030000
Diesel 891000 300 2024 267300000
Investment 29650000000

RIDES INCOME
 Rides Income
Year Amount Hourly Yearly
2014 20 10000 1000000000
2015 20 10000 1000000000
2016 20 10000 1000000000
2017 20 10000 1000000000
2018 20 10000 1000000000
2019 20 10000 1000000000
2020 20 10000 1000000000
2021 20 20000 2000000000
2022 20 20000 2000000000
2023 20 20000 2000000000
2024 20 20000 2000000000
2025 20 20000 2000000000
2026 20 20000 2000000000
2027 20 20000 2000000000
2028 20 20000 2000000000
2029 20 20000 2000000000
2030 20 20000 2000000000
2031 20 20000 2000000000
2032 20 20000 2000000000
2033 20 20000 2000000000
2034 20 20000 2000000000
2035 20 20000 2000000000
2036 20 20000 2000000000
2037 20 20000 2000000000
2038 20 20000 2000000000
2039 20 20000 2000000000
2040 20 20000 2000000000

Rides Income Via Subsidy

Rides Income Via Subsidy

 Year Amount Hourly Yearly
2014 40 10000 2880000000
2015 40 10000 2880000000
2016 40 10000 2880000000
2017 40 10000 2880000000
2018 40 10000 2880000000
2019 40 10000 2880000000
2020 40 10000 2880000000
2021 40 20000 5760000000
2022 40 20000 5760000000
2023 40 20000 5760000000
2024 40 20000 5760000000
2025 40 20000 5760000000
2026 40 20000 5760000000
2027 40 20000 5760000000
2028 40 20000 5760000000
2029 40 20000 5760000000
2030 40 20000 5760000000
2031 40 20000 5760000000
2032 40 20000 5760000000
2033 40 20000 5760000000
2034 40 20000 5760000000
2035 40 20000 5760000000
2036 40 20000 5760000000
2037 40 20000 5760000000
2038 40 20000 5760000000
2039 40 20000 5760000000
2040 40 20000 5760000000

Officers Salary (With 10% Raise per Year)

Officers Salary (With 10% Raise per Year)

Year No. Pay Yearly
 2014 45 49430 26692200
2015 45 54373 29361420
2016 45 59810 32297562
2017 45 65791 35527318
2018 45 72370 39080050
2019 45 79608 42988055
2020 45 87568 47286861
2021 45 96325 52015547
2022 45 105958 57217101
2023 45 116553 62938811
2024 45 128209 69232692
2025 45 141030 76155962
2026 45 155133 83771558
2027 45 170646 92148714
2028 45 187710 101363585
2029 45 206481 111499944
2030 45 227130 122649938
2031 45 249842 134914932
2032 45 274827 148406425
2033 45 302309 163247067
2034 45 332540 179571774
2035 45 365794 197528952
2036 45 402374 217281847
2037 45 442611 239010031
2038 45 486872 262911035
2039 45 535560 289202138
2040 45 589115 318122352

Staff Salary (With 10% Raise per Year)

Staff Salary (With 10% Raise per Year)

Year No. Pay Yearly

2014 957 25000 287100000

 2015 957 27500 315810000
2016 957 30250 347391000
2017 957 33275 382130100
2018 957 36603 420343110
2019 957 40263 462377421
2020 957 44289 508615163
2021 957 48718 559476679
2022 957 53590 615424347
2023 957 58949 676966782
2024 957 64844 744663460
2025 957 71328 819129806
2026 957 78461 901042787
2027 957 86307 991147066
2028 957 94937 1090261772
2029 957 104431 1199287949
2030 957 114874 1319216744
2031 957 126362 1451138419
2032 957 138998 1596252261
2033 957 152898 1755877487
2034 957 168187 1931465235
2035 957 185006 2124611759
2036 957 203507 2337072935
2037 957 223858 2570780228
2038 957 246243 2827858251
2039 957 270868 3110644076
2040 957 297954 3421708484

Electricity Bills

Electricity Bills
Year Stations Bill Yearly
2014 29 30000 10440000

2015 29 30000 10440000

 2016 29 30000 10440000
2017 29 30000 10440000
2018 29 45000 15660000
2019 29 45000 15660000
2020 29 45000 15660000
2021 29 60000 20880000
2022 29 60000 20880000
2023 29 60000 20880000
2024 29 60000 20880000
2025 29 60000 20880000
2026 29 60000 20880000
2027 29 60000 20880000
2028 29 60000 20880000
2029 29 60000 20880000
2030 29 60000 20880000
2031 29 60000 20880000
2032 29 60000 20880000
2033 29 60000 20880000
2034 29 60000 20880000
2035 29 60000 20880000
2036 29 60000 20880000
2037 29 60000 20880000
2038 29 60000 20880000
2039 29 60000 20880000
2040 29 60000 20880000

Bus Maintainance

Bus Maintainance
Year No. Amount Yearly
2014 66 480000 31680000
2015 66 480000 31680000
2016 66 480000 31680000

2017 66 480000 31680000

 2018 66 480000 31680000
2019 66 480000 31680000
2020 66 480000 31680000
2021 66 480000 31680000
2022 66 480000 31680000
2023 66 480000 31680000
2024 66 480000 31680000
2025 66 480000 31680000
2026 66 480000 31680000
2027 66 480000 31680000
2028 66 480000 31680000
2029 66 480000 31680000
2030 66 480000 31680000
2031 66 480000 31680000
2032 66 480000 31680000
2033 66 480000 31680000
2034 66 480000 31680000
2035 66 480000 31680000
2036 66 480000 31680000
2037 66 480000 31680000
2038 66 480000 31680000
2039 66 480000 31680000
2040 66 480000 31680000

Diesel Cost

Diesel Cost

Year Liters/Bus Price/L Yearly

2014 891000 122 108702000
2015 891000 88 78408000

2016 891000 76 67716000

 2017 891000 76 67716000
2018 891000 110 98010000
2019 891000 125 111375000
2020 891000 112 99792000
2021 891000 137 122067000
2022 891000 228 203148000
2023 891000 330 294030000
2024 891000 300 267300000
2025 891000 300 267300000
2026 891000 300 267300000
2027 891000 300 267300000
2028 891000 300 267300000
2029 891000 300 267300000
2030 891000 300 267300000
2031 891000 300 267300000
2032 891000 300 267300000
2033 891000 300 267300000
2034 891000 300 267300000
2035 891000 300 267300000
2036 891000 300 267300000
2037 891000 300 267300000
2038 891000 300 267300000
2039 891000 300 267300000
2040 891000 300 267300000

The IRR comes the net income:

Net Income
Income Expenses Total
3880000000 30114614200 -26234614200
3880000000 465699420 3414300580
3880000000 489524562 3390475438

3880000000 527493418 3352506582

 3880000000 604773160 3275226840
3880000000 664080476 3215919524
3880000000 703034024 3176965976
7760000000 786119226 6973880774
7760000000 928349449 6831650551
7760000000 1086495593 6673504407
7760000000 1133756153 6626243847
7760000000 1215145768 6544854232
7760000000 1304674345 6455325655
7760000000 1403155779 6356844221
7760000000 1511485357 6248514643
7760000000 1630647893 6129352107
7760000000 1761726682 5998273318
7760000000 1905913351 5854086649
7760000000 2064518686 5695481314
7760000000 2238984554 5521015446
7760000000 2430897010 5329102990
7760000000 2642000711 5117999289
7760000000 2874214782 4885785218
7760000000 3129650260 4630349740
7760000000 3410629286 4349370714
7760000000 3719706214 4040293786
7760000000 4059690836 3700309164
0 0 0

FUTURE WORTH:

Future Worth
6% 8% 10%
-26234614200 -26234614200 -26234614200
3619158615 3687444626 3755730638
3809538202 3954650551 4102475280

3992888979 4223192771 4462186260

 4134898424 4455909957 4795259616
4303625762 4725240849 5179270553
4506586956 5041445733 5628189022
10486138154 11952006118 13590120718
10888613077 12644908392 14644249676
11274745278 13340366188 15735774306
11866593531 14305563480 17186770017
12424087353 15260237357 18673232948
12989383508 16255608159 20259577217
13558692684 17288224366 21945550317
14127291473 18353097370 23728723957
14689349010 19443341444 25603824869
15237723728 20549740345 27561903859
15763725215 21660226297 29589307015
16256835310 22759254390 31666405168
16704381584 23827052207 33766028302
17091155236 24838720653 35851540098
17398964092 25763157378 37874473956
17606109844 26561768787 39771634969
17686776853 27186930166 41461551942
17610317753 27580145792 42840138843
17340418598 27669851777 43775395093
16834123469 27368793572 44100937864
0 0 0

PRESENT WORTH:

Present Worth
6% 8% 10%
-26234614200 -26234614200 -26234614200
3221038283 3161389426 3103909618
3017511070 2906786212 2802045817

2814829173 2661327813 2518787815

 2594286426 2407389502 2237024001
2403122148 2188700791 1996833006
2239635652 2002027464 1793314470
4638029018 4069192449 3578703535
4286262073 3690928223 3187015401
3950037005 3338413687 2830217325
3700059955 3069233000 2554703849
3447747565 2806975797 2293931481
3208099083 2563498634 2056865692
2980336629 2337398427 1841351338
2763724052 2127375802 1645429198
2557564479 1932227409 1467318162
2361198000 1750838803 1305399038
2173999485 1582177860 1158199835
1995376516 1425288669 1024382377
1824767436 1279285884 902730143
1661639502 1143349494 792137203
1505487142 1016719975 691598166
1355830301 898693810 600199042
1212212881 788619332 517108929
1074201265 685892879 441572463
941382919 589955234 372902948
813365064 500288326 310476116
0 0 0

The net profit value will be as follows

For 6%, 8% and 10%

NPV
6% 38507128919
8% 26689360704
10% 581315638305
Benefit To Cost Ratio Benefit To Cost Ratio
2.44