HUM100 Lecture Notes - Deeper Understanding
This is a Project (Submit date: 2017/6/10)
Kindly Solve ALL The Project Requirments!
This Project is Related to and Part of "Linear Algabra and Differential Equations [Course]"
After taking the Engineering Economics course, you were invited as an expert to conduct an economic analysis for a given project. The project is related to solving the frequent electricity shutdowns in one of the major cities in Country A. Therer are three options: 1) adding more capacity, 2) purchasing power from Country B for 20-year period, and 3) Do Nothing. For the first option, there are 4 possible scenarios and only one scenario can be selected: 1) building a nuclear plant with initial cost (P) = -$50M and annual operating cost (A) = -$1.2M. Project life = 15 years. 2) building a solar power plant with P = -$32M and A = -$1.0M. Project life = 10 years. 3) buidling a hydroelectric dam with P = -$50M and A = -$1.7M. Project life = 30 years. 4) building a wind farm with P = -$28M and A = -$2.2M. Project life = 10 yeas. For the second option, Country A can sign a 20-year contract with Country B to purchase electricity. 350,000,000 kilowatt-hours is needed annually to prevent the electricity shutdowns. The price is 1.5 cents per kilowatt-hour for the first year and and then increases 6% annually for the 20-years. For the third option, Do Nothing, it is not recommended by the goverment and it should be economically justfied to be selected. By doing nothing, electricity shutdowns will continue to occur and it is anticipated that some companies will have to close down for some period of time which will result in monetary loss. These companies will then leave the city which will negatively impact the whole economy of the city. Select an appropriate planning horizon and perform an economic analysis to make recommendations regarding the best option from an economic basis. If the goverment is also concerned about environmental issues, will that change your recommendation? Use 6% interest rate for all your calculations and specify any assumtions you make. PLEASE INCLUDE YOUR CALCULATIONS/EXCEL FORMULAS AND DETAILED DESCRIPTION OF YOUR ANALYSIS IN YOUR ANSWER HERE.
Choose an item that you would like to manufacture. You do notactually need to manufacture something, but will proceed throughthe assignment as if you were planning on manufacturing the itemyou have selected. The product should require materials and laborand be something that you are familiar with in process from startto finish. The product must be useful and marketable. You canchoose something as simple as making chocolate chip cookies, a typeof craft, or something more complicated. Consider production as ifyou were making the product from beginning to end, and not as ifusing a kit.
Perform the following steps:
Choose a product to manufacture and describe the manufacturingprocess.
Forecast the variable cost per unit.
Forecast manufacturing costs and selling and administrativeexpenses as either variable or fixed.
Prepare a contribution margin income statement separating allvariable and fixed costs into their own categories.
Determine the breakeven point in units and dollars. Also,determine the number of units and dollars that need to be sold tomake a target profit of $5,000 a month.
Identify what types of trends you should be aware of in theindustry and who the primary competitors are.
Develop a balanced scorecard for a company that will sell yourproduct, indicating two financial, two internal business process,two customer, and two learning and growth key productive indicatorsthat will serve as the basis for your product strategy. Based onyour costing scenario and information gathered from items 1-6,develop viable targets for these key productive indicators. Name aninitiative the company can take to ensure the target is met.
Your final project should be in the form of a PowerPointpresentation that addresses each of these different areas. Steps#1-5 will involve numerical calculations and 6-7 should be put intothe form of a table in proper format and included as part of thepresentation. You should show any summary calculations in a tablewithin a slide. Your submission should be 7-8 slides and follow theWriting and APA Requirements