Taj Mahal Worth | How much is the Taj Mahal Worth?

Taj Mahal Worth:

Symbol of love, Marbled Beauty, there are many names for this marvelous structure constructed in 1653 by Shah Jahan for his late wife Mumtaz Mahal.  

Taj Mahal Worth

Many myths surround it today, as many people claim many things like the hands of workers were cut off and we can only estimate whether these myths are true or not.

Many of us may have thought of owning such a monument but halted when not knowing the price tag for it. Today we will try to put a price tag on it.

Taj Mahal is believed to be completed in its entirety in 1653 at the cost estimated to be around RS 32 million, after inflation or converting it into today’s worth we will get more than RS 70 billion. This means our Taj Mahal will be worth a little more than 1 billion dollars in construction costs only.

Taj Mahal, one of the most beautiful sites to visit and one of the world’s wonders, has earned over RS 200 cores through tickets sale from 2017 to 2019 and the government has to spend over RS 13.6 cores during the same time frame for its maintenance and beautification. Talk about an expensive make-over.

Now, armed with mathematical knowledge and hard numbers can deduce a price tag using a very powerful tool known as mathematics and calculator.

How Much Is Taj Mahal Worth?

There are two methods available to us for calculating the Taj Mahal value

Method 1- Inflation – Adjusted value

Method 2- NVP of Revenue

Inflation-Adjusted Value:

Taj Mahal was built from 1632-1653. Let’s take 1640 as the mid-point.

Cost at time of construction was INR 32,000,000. The cost was about 32 million India rupees during the years 1632-1653. Converting the same to $ at $1.5 per £1, the value of the Taj Mahal comes to $1,018,200, 000 (i.e., a little over $1 billion).

But wait, over the years huge costs have been incurred for the beautification and maintenance of the Taj Mahal.

Let us assume that the annual maintenance + beautification cost is 5% of the current value of the Taj Mahal.

Inflation-Adjusted Value of Taj Mahal

Hence, the total value of the Taj Mahal comes out to be $10 billion dollars.

But we cannot be too sure of the 5% maintenance cost assumption. So here is a scenario analysis for different percentage costs.

Scenario Analysis:

Scenario Analysis of Taj Mahal

We see that the value of the Taj Mahal falls between $3 billion to $20 billion.

NPV of Revenues from Taj Mahal

Last year, Taj Mahal recorded revenues of INR 200,000,000 (INR 20 crore). At an average exchange rate of 50 rupees to the $, the revenues were equivalent to $4,000,000 (4 million US $).

Now, let us make some more assumptions:

  • Taj Mahal will be around for 300 more years
  • The revenues will grow at 10%
  • Inflation will be 8%

Hence, the real growth rate of revenues will be around 2% (=10%-8%).

Now the revenues form a GP with the following parameters:

  • a = $4,000,000
  • r = 1 + 2% = 1.02
  • n = 300 (years)[math]

Hence, the NPV of the revenues is = a*(r^n-1)/(r-1) = $75,846,901,612
i.e., $75 billion.

But again, a 2% real growth rate might not be feasible.

Scenario analysis:

Revenues from Taj Mahal

So, the value of the Taj Mahal varies from $20 billion to $ 5.5 trillion.

One just not simply buy the Taj Mahal, there are many layers of work and things to consider one of them is political and social pressure.

Taj Mahal has many political significances and many political parties and religious groups have been seen attaching their opinions and propaganda to it. All this put Taj Mahal in a very awkward state, because of this its current owner, the Government of India has tremendous social and political pressure over them.

All this tells us that if someone were to buy the Taj Mahal, they have to take not only have to consider not only a price tag but social and political pressure that will be present during buying of it and after.

So, you have tackled all the laws and come to an understanding with the government, political parties, and religious groups. Now comes the main question “how much money will it take to buy the Taj Mahal” and the answer is way more than $20 billion dollar.

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