EGR 403 – Asset Allocation in Technical Decision Making Team 1 Final Presentation (Leongkiat Lee, Brad Roush, Brian Swager) 12/1/2018 EGR 403 – Asset Allocation in Technical Decision Making

EGR 403 – Asset Allocation in Technical Decision Making Introduction Team member roles Leongkiat Lee – Summarizer Brad Roush – Organizer Brian Swager – Techie Type of project – Equipment Comparison Scenarios Cash Flow Analysis Sensitivity Analysis 12/1/2018 EGR 403 – Asset Allocation in Technical Decision Making

EGR 403 – Asset Allocation in Technical Decision Making 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 12/1/2018 EGR 403 – Asset Allocation in Technical Decision Making

EGR 403 – Asset Allocation in Technical Decision Making 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 12/1/2018 EGR 403 – Asset Allocation in Technical Decision Making

EGR 403 – Asset Allocation in Technical Decision Making 2005 Honda Civic DX 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 12/1/2018 5 EGR 403 – Asset Allocation in Technical Decision Making

Cash Flow Analysis 1995 Civic EUC = $601.58 12/1/2018 6 EGR 403 – Asset Allocation in Technical Decision Making

Cash Flow Analysis 2005 Civic EUC = $1054.27 12/1/2018 7 EGR 403 – Asset Allocation in Technical Decision Making

Sensitivity Analysis - Resale 12/1/2018 8 EGR 403 – Asset Allocation in Technical Decision Making

Sensitivity Analysis – Gas Grad. 12/1/2018 9 EGR 403 – Asset Allocation in Technical Decision Making

Sensitivity Analysis – Hvy. Maint. 12/1/2018 10 EGR 403 – Asset Allocation in Technical Decision Making

EGR 403 – Asset Allocation in Technical Decision Making 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?? 12/1/2018 EGR 403 – Asset Allocation in Technical Decision Making

EGR 403 – Asset Allocation in Technical Decision Making Resources Kelly Bluebook Internetautoguide.com Autos.aol.com Edmunds.com Esurance.com Energy Information Administration Tonto.eia.doe.gov 12/1/2018 EGR 403 – Asset Allocation in Technical Decision Making