Will ROI and IRR be static irrespective of number of vehicles being increased ?
Yes. Unless you can charge more interest rate because you have a dominant position in the market.
Can you please share the working / advise on the calcualtion methodolgy.
IRR is the same calculation like you used in excel
Can you please highlight the difference between the IRR / ROI / CAGR with respect to this example.
IRR assumes you can redeploy your capital received through EMI each month at the same IRR which usually does not happen. ROI is one time return with no redeployment of capital until 3 years
I am trying to compare it with "when HDFC Bank stock becomes 55 times in 17 years" it is 26% CAGR.
Your CAGR in earnings can be 64%. But are you sure you can increase the number of vehicles by 50% YOY for 20 years?
Yes. Unless you can charge more interest rate because you have a dominant position in the market.
Can you please share the working / advise on the calcualtion methodolgy.
IRR is the same calculation like you used in excel
Can you please highlight the difference between the IRR / ROI / CAGR with respect to this example.
IRR assumes you can redeploy your capital received through EMI each month at the same IRR which usually does not happen. ROI is one time return with no redeployment of capital until 3 years
I am trying to compare it with "when HDFC Bank stock becomes 55 times in 17 years" it is 26% CAGR.
Your CAGR in earnings can be 64%. But are you sure you can increase the number of vehicles by 50% YOY for 20 years?
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