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Economic Comparison

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Kelly Blue Book Online. Power Chevrolet Automotive Dealership. Dr. Phil Rosenkrantz ... Kelly Blue Book Online. http://www.kbb.com. Resale Values. Edmunds.com ... – PowerPoint PPT presentation

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Title: Economic Comparison


1
Economic Comparison
www.rsportscars.com/eng/cars/corvette.asp
  • Team 9 Mel Capistrano, Reynaldo Curiel, and
    Saurabh Dave
  • California State Polytechnic University, Pomona

2
Overview
  • Team Roster
  • Objective
  • Parameters
  • Method
  • Conclusion

3
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

4
Objective
  • Affect On Resale Value
  • Manual Transmission
  • Automatic Transmission

joeberkphotography.com
5
Parameter Assumptions
  • Consumer
  • 30 Year Midlevel Engineer
  • Pomona, CA 91768
  • Single
  • Automobile
  • 2005 Base Model Corvette
  • Five Years Period
  • Sold At The End

6
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)

7
Analysis Scenarios
  • Automatic Transmission
  • NPWC 51,093.40
  • EUAC 11,434.75
  • Manual Transmission
  • NPW 50,673.50
  • EUAC 11,170.42

8
Analysis Sensitivity
  • Affects On NPW And EUC
  • Mileage
  • Down payment
  • MARR
  • Fuel Costs

9
Conclusion
  • Winner Manual Transmission
  • Lower Annual Cost
  • Better Fuel Efficiency
  • Higher Salvage Value
  • Preference For An Automatic
  • Non-Economic Reasons
  • City Driving
  • Convenience

10
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

11
Internet Resources
  • Kelly Blue Book Online
  • http//www.kbb.com
  • Resale Values
  • Edmunds.com
  • http//www.edmunds.com
  • Fuel Efficiency
  • BankRate.com
  • - Financing Information
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