05 Jun Question Engineering Economic Analysis
Question
Engineering Economic Analysis
Case Study 1
The following ad is from a 1985 Rome Georgia newspaper. It describes a different loan, the Alternative Auto Loan, which reduces monthly payments and “allows” people to buy a more expensive car than a conventional loan payment would allow.
You will notice that in 1985, auto loan interest was tax deductible. We will ignore that aspect of the loan program in this analysis.
In addition to the material provided in the Guidelines for Case Studies, be sure to answer these questions as you prepare your report:
1. Show how all the monthly payments were computed by the bank. This should be computed and illustrated in Excel, using clearly labeled columns and rows.
2. Suppose that you have decided to finance a new car for 36 months from TrustCompany. Suppose also that you are interested in owning the car (not leasingit). If you decided to go with the Alternative Auto Loan,you would make thefinal payment and keep the car at the end of 36 months. Assume that your opportunity cost rate (personal interest rate) is an interest rate of 8% compounded monthly. (You may view this opportunity cost rate as an interest rateat which you can invest your money in some financial instrument, such as a savings account. And if you can get an 8% interest rate on a savings account, please let me know!) Compare Trust Company’s alternative option with theconventional option and make a choice between them. Note that there are several assumptions you will need to make to answer this question, so clearly document them.
Engineering Economic Analysis
Case Study Report Guidelines
For each case study, a formal, typed report OR PowerPoint is to be turned in by each student.
Be aware that grammar and professionalism are integral to your report. You might come up with the best solution ever in the history of the world, but it has to be expressed properly and clearly.
Report guidelines
Reports should be typed and at most 1.5 spaced, in Times New Roman 10 or 12 point font, with 1 inch margins on all sides. BE SURE TO INCLUDE YOUR NAME IN THE HEADER / FIRST PAGE OF YOUR REPORT!!!!!
Reports will be graded on organization, style, and grammar as well as content.
Your report should sufficiently document the case, your approach, and your conclusions such that one year from now you (or I) could pick it up, read it, and easily understand your work.
The body of the report (text exclusive of graphs, charts, and appendices) should be no more than 5 pages in length, and brevity is appreciated.
PowerPoint Guidelines
PowerPoints should be professional! BE SURE TO INCLUDE YOUR NAME IN THE FIRST SLIDE OF YOUR POWERPOINT!!!!!
PowerPoints will be graded on organization, style, and grammar as well as content.
Your report should sufficiently document the case, your approach, and your conclusions such that one year from now you (or I) could pick it up, read it, and easily understand your work.
The body of the PowerPoint (inclusive of graphs, charts; not inclusive of appendices) should be no more than 20 slides in length, and brevity is appreciated.
Content of report / PowerPoint
The following sub-sections should be included or addressed in some fashion:
Overview of the Case
Problem Statement
Your interpretation of the situation including explicit consideration of any necessary assumptions
Solution Methodology
Overall approach as well as a discussion of engineering economy principles utilized
Recommendations and Conclusions
Be specific and discuss sensitivities
Include the answers to any specific questions here
Make extensive use of graphs and charts as appropriate.
You may use any Excel tools you deem appropriate in analyzing the case. If you use Excel, you must submit the Excel file generated. It will be graded on correctness, organization, and style.
Our website has a team of professional writers who can help you write any of your homework. They will write your papers from scratch. We also have a team of editors just to make sure all papers are of HIGH QUALITY & PLAGIARISM FREE. To make an Order you only need to click Ask A Question and we will direct you to our Order Page at WriteDemy. Then fill Our Order Form with all your assignment instructions. Select your deadline and pay for your paper. You will get it few hours before your set deadline.
Fill in all the assignment paper details that are required in the order form with the standard information being the page count, deadline, academic level and type of paper. It is advisable to have this information at hand so that you can quickly fill in the necessary information needed in the form for the essay writer to be immediately assigned to your writing project. Make payment for the custom essay order to enable us to assign a suitable writer to your order. Payments are made through Paypal on a secured billing page. Finally, sit back and relax.
About Writedemy
We are a professional paper writing website. If you have searched a question and bumped into our website just know you are in the right place to get help in your coursework. We offer HIGH QUALITY & PLAGIARISM FREE Papers.
How It Works
To make an Order you only need to click on “Order Now” and we will direct you to our Order Page. Fill Our Order Form with all your assignment instructions. Select your deadline and pay for your paper. You will get it few hours before your set deadline.
Are there Discounts?
All new clients are eligible for 20% off in their first Order. Our payment method is safe and secure.