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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
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Overview Team Roster Objective Parameters Method Conclusion
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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
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Objective Affect On Resale Value –Manual Transmission –Automatic Transmission joeberkphotography.com
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Parameter: Assumptions Consumer –30 Year Midlevel Engineer –Pomona, CA 91768 –Single Automobile –2005 Base Model Corvette –Five Years Period –Sold At The End
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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)
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Analysis: Scenarios Automatic Transmission NPWC: $51,093.40 EUAC: $11,434.75 Manual Transmission NPW: $50,673.50 EUAC: $11,170.42
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Analysis: Sensitivity Affects On NPW And EUC –Mileage –Down payment –MARR –Fuel Costs
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Conclusion Winner: Manual Transmission –Lower Annual Cost –Better Fuel Efficiency –Higher Salvage Value Preference For An Automatic –Non-Economic Reasons City Driving Convenience
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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
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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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