The document calculates the return on investment for installing RFID machines on 50 buses. It estimates annual maintenance costs of PHP 50,000 and profit income of PHP 2.19 million in the first two years from card sales. In years 3-5, income is expected to decrease by 50% as most commuters have cards. Total profit over 5 years is PHP 3.5 million, yielding an estimated return on investment of 18.48%.

1. RETURN ON INVESTMENT
Target number of buses having RFID machine = 50 buses
Yearly Maintenance per RFID Machine = Php 1,000 x 50 buses = Php 50,000.00
2% Profit Income = Php 1,000.00(assume minimum Income per Trip) x 0.015 = Php 15.00/trip
x 6 trip/day = Php 90.00 x 365 days/year = Php 32,850.00/bus x 50 Buses
= Php 2,190,000.00/year for Year 1 and 2
For Year 3-5, 50% possible decrease of card sales since most commuters already purchased
a card
= Php 1,095,000.00
10% Driver’s Incentives = Php 2,190,000.00 x 0.1 = Php 219,000.00/year for Year 1 and 2
For year 3-5 10% Driver’s Incentive = Php 109,500.00
Contingency Fund = Php 300,000.00/year
𝑃 =
𝐹
(1 + 𝑖) 𝑛
3.5 = [ 1.621𝑀 𝑥
(1 + 𝑖)2
− 1
𝑖(1 + 𝑖)2
] + [ 0.3655𝑀 𝑥
(1 + 𝑖)2
− 1
𝑖(1 + 𝑖)2
𝑥
1
(1 + 𝑖)2
]
𝑖 = 0.1848
𝑹𝑶𝑰 = 18.48 %
Preparedby:
ALCALA, ELAINE GRACE E.
BARBOSA, GERALDINE MARLA T.
DELA CRUZ, JONNA
PALANDANGAN,JOHNMARK E.
VILLAROSA, PEJJIE A.
MEPE
TUPV- ME5PGB Class 2020
Php3.5M
Php2.19M Php2.19M Php1.095M Php1.095M Php1.095M
Php0.219 M Php0.219M Php0.1095M Php0.1095M Php0.1095M
Php0.05M Php0.05M Php0.05M Php0.05M Php0.05M
Php0.3M Php0.3M Php0.3M Php0.3M Php0.3M
ROI = 18.48 %