UV Express BusinessRoute: BF Homes to Makati Cinema Square

Andrew Joseph B. Cruz

Case Study7:10 A.M.7:41 A.M.Terminal Location along Aguirre Avenue, beside Metrobank

Projections

Trip 1Trip 2Trip 3Trip 4Revenue1,080.00 1,080.00 1,080.00 1,080.00 P4,320.00 Expenses2,244.00Gas 150.00 150.00 150.00 150.00 600.00 Drivers Fee 130.00 130.00 130.00 130.00 520.00 Coop Fee 100.00 100.00 100.00 100.00 400.00 Skyway 118.00 118.00 118.00 118.00 472.00 SLEX 84.00 84.00 84.00 252.00 Net:P2,076.00

Projections

Daily Revenue P2,076.00 Number of operating days 20 days/monthMonthly Net Profit P41,520.00 Monthly OPEX P 3,000.00Yearly Revenue P462,240.00 Less: Holidays + Bad Weather -P31,140.00 Total: P431,100.00

Initial Investment

1Nissan Urvan 18 Seater @30% DPP178,8002Franchise FeeP230,000Cooperative RegistrationP7,500IncidentalsP15,000Total:P416,000

Debt/Equity MixKristine:P350,000Andrew:P70,000

Chart1

350000

70000

D/E Ratio

Sheet1

D/E Ratio

Debt350000

Equity70000

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Loan Details

Loan Amount:P350,000Tenor:2.5 YearsInterest:3% per yearPayable:28th of the monthStarting:June 2015Ending:December 2017Amortization:P12,124.21/Monthly

Acquisition 1: Nissan UrvanNissan Urvan, 2012 Model, 18 SeaterBank Financing with RCBC 30% DP; T = 3 yearsPrice: P596,000Monthly Amortization: P11,588.89/monthInterest rate to be negotiated upon winning the bid

Acquisition 1: Nissan Urvan

Acquisition 2: UV FranchiseFranchise requires 100% down paymentProcessing time around 2~3 monthsAcquiring the franchise from the President of the transport cooperative, Edwin MendozaLTFRB Verified

Sensitivity Analysis

Case 1: Normal ConditionRevenue 41,520.00 Less: Kristine- 12,124.21 Less: RCBC- 12,000.00 Total: P17,395.79

Case 2: Two Trips a dayRevenue 20,760.00 Less: Kristine- 12,124.21 Less: RCBC- 12,000.00 Total: -P3,364.21

Mitigants for Case 2Monthly Salary is P20,0003-month Buffer to pay for amortization

Worst Case: LiquidationLoan amount: P350,000Franchise Collateral: P230,000Amortization Balance:-P120,000Months to cover exposure: 10 months

EndThank you!

*P38,925 a month15 Days = Holidays + Bad Weather**