Engineering Economics Analysis
The motivation of this project is to fulfill a typical consumer’s economic dilemma in the decision process for an optimal automobile purchase. The purpose of this research paper is to investigate a group of different economic analysis methods at a simple level with only the fundamental scope in mind such that a reasonable decision selection can be concluded. Our first approach is to determine the Annual Worth for each of a set of mutually exclusive alternatives on a 5 and 10 year useful life. This entails making some reasonable estimate assumptions, considering the total operation cost for the life cycle of the car. Included in our analysis will be a section to determine the optimal useful life for a subset of the alternatives based on the EUAC. The result that we determine through the different economic analysis methods will be that the efficient (modern) regular gasoline combustion engine type car gets the consumer the most “bang for the buck” and also we will show approximately what would need to take place to change this result. In conclusion, we learned that multiple advanced economics analysis methods should be involved to resolve a deeper insight over the different aspects of a single complicated mathematical problem. There are hard and soft considerations and these are some things that make different consumers opinions different enough such that they may weigh the attributes of the alternatives differently than how we conducted our research.
Bilello, Antonio; Charoensupyanan, Apisit; Fan, Pai Chun; Nguyen, Tin; Siriwannangkul, Benjamas; and Yuan, Xu, "The Selection of Economic Car" (2011). Engineering and Technology Management Student Projects. 615.