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Uemk 4343 Engineering Economics Assignment

The company is experiencing reduced revenue due to an economic downturn. To maintain the company's well-being, expanding into a new product line has been proposed, but some shareholders are unconvinced. The assignment is to draft a proposal with two additional options and use economic analysis methods to prove expanding into a new product line is the best option. The proposal must include background on current products, two other revenue increase options, new product features compared to existing items, and annual cash flows and ROR calculations to justify the selection based on a 25% MARR.

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38 views1 page

Uemk 4343 Engineering Economics Assignment

The company is experiencing reduced revenue due to an economic downturn. To maintain the company's well-being, expanding into a new product line has been proposed, but some shareholders are unconvinced. The assignment is to draft a proposal with two additional options and use economic analysis methods to prove expanding into a new product line is the best option. The proposal must include background on current products, two other revenue increase options, new product features compared to existing items, and annual cash flows and ROR calculations to justify the selection based on a 25% MARR.

Uploaded by

dvian
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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UEMK 4343 ENGINEERING ECONOMICS

ASSIGNMENT

Assuming you are working in a manufacturing industry. The company that you attach to
experience a reduction of revenue due to the current economy down turn. In order to upkeep the
wellbeing of the company, a few strategies have been proposed. One of the proposals suggests
expanding a new line of product. However, some of the share holders in the company are not
convinced with idea.
Draft a proposal with TWO other options and prove that the idea of expanding a new line of
product is the best option in up keeping the benefits of the company.
In your proposal, you should include to following details:
i.
ii.
iii.
iv.

Background and the product produce.


TWO options to increase the revenue of the company.
Features of the propose new product (explain why the product should be introduced as
compare to the existing items)
Use all the methods of economic analysis you have learned so far (PW, AW, ROR, etc.),
explain the reason(s) of selecting new line of product as the BEST option among the two
options proposed. If Minimum Rate of Return (MARR) is 25%

Remarks: Your assignment should include the annual cash flow for the 3 options, highlight the
ROR, and explain how you make your decision between the 3 options.

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