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1 . A Tanzanian transport company operates 2 0 0 electric buses for public transportation in the city of Dar es Salaam. The description of

1. A Tanzanian transport company operates 200 electric buses for public transportation in the city
of Dar es Salaam. The description of their operation is shown in the Table below:
Descriptions Units Rate (TZS)
Total (TZS)
Initial investment TZS 200,000,000
Charging units/day kWh/day/bus 25
Unit cost TZS/kWh 350
Maintenance cost TZS/km 10,000
Wages TZS/month-driver 200,000
Daily trips #trips/day-bus 20
Daily income TZS/day-bus 1,000,000
Trip mileage km/trip 5
a). Calculate the initial investment, monthly operational cost, and monthly income in TZS.
b). Is there any net income for this company?
c). Estimate the payback period.
2. What is your advice to this company?

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