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Today, an investor who would like to invest in transportation sector has to choose between Big Bang and DailyLine buses with capacity of 54 passengers.

Today, an investor who would like to invest in transportation sector has to choose between Big Bang and DailyLine buses with capacity of 54 passengers. Big Bang's price is 675,000 $, second hand value after 5 years is 340,000 $ and fuel consumption is 24 liters per 100 km. DailyLine's price is 740,000 $, second hand value at the end of 5 years is 330,000 $ and fuel consumption is 20 liters per 100 km. The investor's plan is to run this bus for 5 years in Goat Tourism between New York and Chicago for two round trips in a day for 350 days a year. The depreciation method is linear, the tax rate is 20%, and the cost of capital is 16%. As for the operations, 30% of one ticket sale of 60 $ is cut off at the source and 42 $ is paid per passenger. The fixed costs are as follows: Monthly gross personnel cost per driver 4,500 $ (there are 3 drivers) Monthly gross personnel cost per bus attendant is 1,800 $ (there are 3 bus attendants) Annual maintenance and repair cost for o Big Bang is 8,000 $ o DailyLine is 12,000 $ Annual bus tire cost for each of the busses is 12,000$ Annual vehicle inspection cost is 600 $ Monthly motor insurance is 1,000 $ Monthly traffic insurance is 120 $ Monthly hospitality and catering cost paid to GoatTourism is 2,500$ New york Chicago highway fare is 40$ Angel Bus Station(located in Newyork) entrance fee is 60 $ Camel Station(located in Chicago) entrance fee is 50$ Newyork bridge toll is 25$ Chicago is 550 km from Newyork and price of 1-liter diesel is 4.00 $. Accordingly, find out how many passengers to carry on a one-way trip to break-even in both accounting and finance views. Which of the buses should the investor choose? Why?

Can you solve Accounting Break-Even Analysis or Financial Break-Even Analysis method. like

Initial Investment

Depreciation Pre Tax Profit

Profit after tax I will give like thanks <3

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