Investor group offered three proposals To invest $3,500,000 on this product with annual O&M of $62,000 starting end of year one. The proposal is expected to result in annual benefit in cash flow of $920,000 over na years period with interest rate of 12.5 %.To invest $2,700,000 on this product with annual O&M of $83,000 starting end of year one. The proposal is expected to result in annual benefit in cash flow of $830,000 over nb years period with interest rate of 11 %.To invest $1,900,000 on this product with annual O&M of $91,000 starting end of year one. The proposal is expected to result in benefit in cash flow of $220,000 first year, which increases by $60,000 yearly over nc years period with interest rate of 14 %. Which proposal you should accept, using the present worth analysis?
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ENGG255 – TERM PROJECT
School of Engineering
Foldable Stair Climbing Cart
Part I – Design
Project statement
Design a Climbing Cart that can be used for easily transporting groceries, laundry, books etc… Devise a
mechanism of motion that can tackle obstacles, stairs, curbs, slopes and uneven terrain. It should be foldable
to a maximum of 5 in. depth for easy storage. Weight should not exceed 15 lb., while maintaining a weight
capacity of 100 lb. The size of the cart should accommodate moving of medium-sized household items.
Customers prefer the product to have a comfortable handle, and to be quick and easy to assemble.
Part II – Economics
Investor group offered three proposals
a) To invest $3,500,000 on this product with annual O&M of $62,000 starting end of year one. The
proposal is expected to result in annual benefit in cash flow of $920,000 over n a years period with
interest rate of 12.5 %.
b) To invest $2,700,000 on this product with annual O&M of $83,000 starting end of year one. The
proposal is expected to result in annual benefit in cash flow of $830,000 over nb years period with
interest rate of 11 %.
c) To invest $1,900,000 on this product with annual O&M of $91,000 starting end of year one. The proposal
is expected to result in benefit in cash flow of $220,000 first year, which increases by $60,000 yearly over
nc years period with interest rate of 14 %.
Which proposal you should accept, using the present worth analysis?
Group A
Group B
Group C
Group D
Group E
Group F
na
na
na
na
na
na
=4
=8
=6
=5
=4
=5
nb
nb
nb
nb
nb
nb
=8
=4
=8
=4
=5
= 10
nc
nc
nc
nc
nc
nc
= 16
= 16
= 24
= 20
= 20
= 20
ENGG255 – TERM PROJECT
School of Engineering
Instructions
Form teams and work on producing the following project components:
(i)
A prototype or a scaled model. The model cannot be less than 25% of the original size.
The proof of concept should be shown through a physically made prototype/ model. Submission
of the prototypes/ models.
(ii)
A written report. Each report should include:
• Title page;
• Table of contents, showing sections with headings;
• Introduction outlining the scope of your project.
• Methodology
• Discussion/ procedure, that reflects understanding of the design methodology. Discuss
the problem formulation, objectives, objective tree, PCC chart, constraints, functionmeans tree, QFD chart and drawings. Also include requirements (specifications), metrics
and a conceptual design with an alternatives and morphological chart followed by a
detailed design (costs, materials and analysis of design). Project planning and timeline
should be included. Discussions should address the ethical and environmental issues.
• Results
• Conclusion summarizing the report.
• Technical drawings using a CAD tool should be printed and attached.
…
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