BEE 31902 ENGINEERING ECONOMICSECTION 2PROJECT

UNDERGROUND CABLE INSTALLATION

LECTURER`S NAME: ZURKARNAIN BIN DAUD STUDENT’S NAME STUDENT’S ID

TAN YING YIN DE130085

TRACY CHAI ANAK AJOT DE130086

PANG JIA SHIM DE130078

SENG WEIL YEN DE130082

KWONG JUN YE DE130022

GO HONG KENG DE130103

MUHAMMAD ASHRAF HAFIFIE SHAARI DE130047

ADRYAN ANDY ANAK NANYO DE130090

SOFINI BIN SUSENG DE130084

LIM YEU SHIAN AE130260

Table shows the whole capital expenditures used by our company when conducting out the project.

The total cost refers to the amount of costing per project.

Table shows the whole working capital used by our company when conducting out project.

The total cost refers to the amount of costing per project.

Life Cycle Cost ( LCC)

Use to determine the most cost-effective option among different alternatives to do a project.

When each of them is equally appropriate and suitable to be implemented on technical grounds.

From the graph, the plot/issues stated are the cumulative life-cycle cost, cumulative committed life-cycle cost and potential for life-cycle cost saving.

WORK BREAKDOWN STRUCTURE

CASH FLOW DIAGRAM (CFD)for the whole operation of our project

CASH FLOW DIAGRAM (CFD) for the machine that we bought for a long time use (crane)

MINIMUM ATTRACTIVE RATE of RETURN (MARR)

By calculation, we received RM 544,905.40 per project.

Based on our expectation, when we run this project for three consecutive projects, approximately we will be able to collect about RM1,634,716.20.

With that, we would be able to make payment of the loan for the previous project within 1 year.

Keypoint:

1) 855,094.60 x 5% = 42,754.73(interest)

2) 42,754.73 x 3(years) = 128,264.19(3 years interest)

3) 855,094.60+128,264.19 = 983,358.79 ( total amount)

4) 983,358.79/3(years) = 327,786.2633 (per year)

5) 327,786.2633 /12(months) = 27,315.5219 (per month)