1 / 12

EGR 403 – Asset Allocation in Technical Decision Making

Team 1 Final Presentation. EGR 403 – Asset Allocation in Technical Decision Making. (Leongkiat Lee, Brad Roush, Brian Swager). Introduction. Team member roles Leongkiat Lee – Summarizer Brad Roush – Organizer Brian Swager – Techie Type of project – Equipment Comparison Scenarios

cais
Download Presentation

EGR 403 – Asset Allocation in Technical Decision Making

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Team 1 Final Presentation EGR 403 – Asset Allocation in Technical Decision Making (Leongkiat Lee, Brad Roush, Brian Swager)

  2. Introduction • Team member roles • Leongkiat Lee – Summarizer • Brad Roush – Organizer • Brian Swager – Techie • Type of project – Equipment Comparison • Scenarios • Cash Flow Analysis • Sensitivity Analysis EGR 403 – Asset Allocation in Technical Decision Making

  3. The Scenarios • Buy a 2005 Honda Civic DX 4 dr • Buy a 1995 Honda Civic DX 4 dr • Own for 3 years • Assume 15,000 miles driven per year • 80 % Highway, 20 % City EGR 403 – Asset Allocation in Technical Decision Making

  4. 1995 Honda Civic DX • Purchase Price = $4375.00 • Maintenance = $117.81 every 2 months • Heavy Repair = $1000.00 per year • Insurance = $445.00 every 6 months • Fuel = $138.35 per month • Average fuel price = $3.72 per gal • Resale Value = $1935.35 EGR 403 – Asset Allocation in Technical Decision Making

  5. 2005 Honda Civic DX 9/7/2014 5 • Purchase Price = $12,805.00 • Maintenance = $165.81 every 2 months • Heavy Repair = $0.00 per year • Insurance = $522.00 every 6 months • Fuel = $126.96 per month • Resale Value = $12,365 EGR 403 – Asset Allocation in Technical Decision Making

  6. Cash Flow Analysis 1995 Civic EUC = $601.58 9/7/2014 6 EGR 403 – Asset Allocation in Technical Decision Making

  7. Cash Flow Analysis 2005 Civic EUC = $1054.27 9/7/2014 7 EGR 403 – Asset Allocation in Technical Decision Making

  8. Sensitivity Analysis - Resale 9/7/2014 8 EGR 403 – Asset Allocation in Technical Decision Making

  9. Sensitivity Analysis – Gas Grad. 9/7/2014 9 EGR 403 – Asset Allocation in Technical Decision Making

  10. Sensitivity Analysis – Hvy. Maint. 9/7/2014 10 EGR 403 – Asset Allocation in Technical Decision Making

  11. Conclusion • Which car is better – 1995 Honda Civic DX • Why?? • EUC is lower • Lower cost on all factors • Except Heavy Maint. • Lower EUC even with sensitivity factors • 2005 preferred as personal choice?? EGR 403 – Asset Allocation in Technical Decision Making

  12. Resources • Kelly Bluebook • Internetautoguide.com • Autos.aol.com • Edmunds.com • Esurance.com • Energy Information Administration Tonto.eia.doe.gov EGR 403 – Asset Allocation in Technical Decision Making

More Related