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Economic Comparison. Team 9: Mel Capistrano, Reynaldo Curiel, and Saurabh Dave California State Polytechnic University, Pomona. www.rsportscars.com/eng/cars/corvette.asp. Overview. Team Roster Objective Parameters Method Conclusion. Team Roster. Mel Capistrano

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Economic comparison

Economic Comparison

Team 9: Mel Capistrano, Reynaldo Curiel, and Saurabh Dave

California State Polytechnic University, Pomona

www.rsportscars.com/eng/cars/corvette.asp


Overview
Overview

  • Team Roster

  • Objective

  • Parameters

  • Method

  • Conclusion


Team roster
Team Roster

Mel Capistrano

Analyst, Organizer, Researcher, and Summarizer

Reynaldo Curiel

Analyst and Researcher

Saurabh Dave

Analyst and Researcher

Tommy Pouncy(No Longer Enrolled)

Formally Organizer and Summarizer


Objective
Objective

Affect On Resale Value

  • Manual Transmission

  • Automatic Transmission

joeberkphotography.com


Parameter assumptions
Parameter: Assumptions

Consumer

  • 30 Year Midlevel Engineer

  • Pomona, CA 91768

  • Single

    Automobile

  • 2005 Base Model Corvette

  • Five Years Period

  • Sold At The End


Analysis method
Analysis: Method

Net Present Worth Analysis (NPW)

  • NPW = PW Cost – PW Benefits

    Minimize Equivalent Uniform Annual Cost (EUAC)

  • EUC = P(A/P, i, n) - S(A/F, i, n)

  • Convert To EUAC

    Minimum Attractive Rate of Return (MARR)

  • 5% Based on 5 Year Certificate of Deposit (CD)


Analysis scenarios
Analysis: Scenarios

Automatic Transmission

NPWC: $51,093.40

EUAC: $11,434.75

Manual Transmission

NPW: $50,673.50

EUAC: $11,170.42


Analysis sensitivity
Analysis: Sensitivity

Affects On NPW And EUC

  • Mileage

  • Down payment

  • MARR

  • Fuel Costs


Conclusion
Conclusion

Winner: Manual Transmission

  • Lower Annual Cost

  • Better Fuel Efficiency

  • Higher Salvage Value

    Preference For An Automatic

  • Non-Economic Reasons

    • City Driving

    • Convenience


Resources
Resources

Joe Berk Photography

Department Of Motor Vehicles

Edmunds.com

Essentials of Engineering Economic Analysis

Farmers Insurance Group

Kelly Blue Book Online

Power Chevrolet Automotive Dealership

Dr. Phil Rosenkrantz

RSportsCars.com


Internet resources
Internet Resources

Kelly Blue Book Online

http://www.kbb.com

  • Resale Values

    Edmunds.com

    http://www.edmunds.com

  • Fuel Efficiency

    BankRate.com

    - Financing Information