1. 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

2. 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

3. 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

4. EGR 403 – Asset Allocation in Technical Decision Making
1995 Honda Civic DX
Purchase Price = $
Maintenance = $ every 2 months
Heavy Repair = $ per year
Insurance = $ every 6 months
Fuel = $ per month
Average fuel price = $3.72 per gal
Resale Value = $
12/1/2018
EGR 403 – Asset Allocation in Technical Decision Making

5. EGR 403 – Asset Allocation in Technical Decision Making
2005 Honda Civic DX
Purchase Price = $12,805.00
Maintenance = $ every 2 months
Heavy Repair = $0.00 per year
Insurance = $ every 6 months
Fuel = $ per month
Resale Value = $12,365
12/1/2018 5
EGR 403 – Asset Allocation in Technical Decision Making

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

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

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

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

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

11. 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

12. 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