Needs to develop through research and analysis, real life case study. Required to choose one engineering-related organization in UAE and obtain engineering economics data from that organization.
Part1: introduction
This should include the name of the company, location of the company, year established, owners of the company, the nature of the company, the
products/ services the company providers, brief historical developments/ highlights of the company. this part will also include the importance
and /or purpose of the report/project and what it should cover/include.
Part 2: Evaluation of At least two real Engineering Alternatives
2.1: the alternatives : describe in details at least two alternative engineering projects/ engineering investments that are being considered by
the company/ organization. Are the alternatives mutually exclusive or independent choices? Explain.
2.2: Time value of Money: what is the MARR(Minimum Attractive Rate of Return) or other interest rate used by the organization? Describe how the
company set the MARR. Is it a realistic and useful interest rate for this organization? Explain why it is/ is not realistic and useful.
2.3 cash Flow Diagram. Draw a detailed cash flow diagram for each alternative being considered showing all cash inflows and outflows. Put the
details/descriptions at the end of the report as an appendix
2.4 lifespan Are both/ all alternatives expected to have the same lifespan? if not, should you use the study period or LCM method when
determining the PW (perfect world) ? Explain in detail how realistic it is to use the study period or LCM method to make a comparison between the
alternatives.
2.5 the choice. which alternatives should be chosen? Give detailed reasons and analysis to support your argument, ensuring that you include PW
and AW analysis or CC and AW, whatever is applicable or appropriate.
2.6 Rate of Return. What rate of return is expected from the chosen alternatives? is that rate sufficient in your opinion? Give detailed reasons
to support your argument.
2.7 cost/benefut analysis. what are the costs and benefits expected from the chosen engineering projects/ investments? perform a detailed
analysis that includes both economic and any relevant non-economic factors
Part3: Conclusion
when all of the relevant factors are considered, is it advisable to proceed with the chosen engineering projects/ investments? justify your
recommendation by giving a summary/highlights of the analysis.