Economics
University of South Florida Engineering Economic Analysis Questions

University of South Florida

Question Description

I don’t understand this Economics question and need help to study.

in the attachment you will find file ( present worth analysis) what's in there is being completed but (Part C). "look at file (Economic Analysis Assignment) to see what part C is required". the only thing you need to do for part C is to do part 1-2 not 3.


this assignment is not that long nor hard all i need is to complete part C, 1and 2.

Unformatted Attachment Preview

Present Worth Analysis Prior to assignment: Students will review Chapters 5 and 16 from their Engineering Economic Analysis textbook. Although Chapter 16 may not be taught by all Instructors, the specific concepts students are being asked to consider correlate or are simple enough for students to review and understand themselves. Instructions: Instructions for completion, formatting, and submission are located on Pages 5&6. PART A: Textbook concepts (no calculations yet!) In this assignment, students will learn to simplify their microplastics solution into a more manageable problem ready for economic analysis. Students will apply and explain assumptions they are making about their project, will select the economic criteria to judge the economic efficiency of their microplastics solution, and carefully consider the time period covered by the analysis. Assumptions: Teams will determine their own assumptions for their economic analysis for the following categories (begins on page 160 of 13th ed., or Ch. 5, in the section "Assumptions in solving economic analysis problems"): a. End-of-year convention: What conventions will your team use for analysis for P, F, A costs/benefits b. Sunk costs: What sunk costs are associated with the project that actually have no bearing on the economic analysis? (the only relevant costs in an economic analysis are present and future costs). Past events/costs will likely affect public opinion of projects but are not part of analysis i. These might include cost of previously developed prevention/clean-up technology that was funded and may or may not have worked c. Viewpoint of study: From the textbook: “When we make economic analysis calculations, we must proceed from a point of reference.” Will your team proceed from a single viewpoint, or a combined viewpoint? Which stakeholder(s) will be considered for the economic analysis? d. Financing (borrowed money): Who will fund your team’s project? i. Private (bank, investor?) or public funding? e. Inflation/Deflation: i. Level 1: Basic Level (Required): Operate on the assumption in Chapter 5 that inflation/deflation will be stable over the course of your project ii. Level 2: Badge Level (Not required; Student Research): Teams will find likely inflation/deflation based on historical data. Use this to predict will happen over course of their project. Must include references (teams will agree on and use a specific citation style; citations must all be in the same style). f. Interest Rates: i. Level 1: Basic Level (Required): Teams use interest rates given to them 1. Private funding – bank or investor has interest rate or minimum rate of return (MARR) of 12% per year, compounded annually 2. Public funding – use federal standard of 7% interest rate (Ch 16, pg 586, in the section “Opportunity Cost Concept”) EGN 3615 | Drs. J. Bartell & J. Chilton | Spring, 2020 1 of 6 ii. Level 2: Badge Level (Not required; Student Research): Teams find other interest rates or MARR given to environmental projects by private or public funding (city, state-level), with references g. Income Taxes: i. Level 1: Basic Level (Required): Teams use assumption in Chapter 5 and evaluate choices without considering income tax (students won’t cover this until Ch 12) ii. Level 2: Badge Level (Not required; Student Research): Teams find income taxes associated with their project if applicable with references 2) ECONOMIC CRITERION: Based on their above choices, teams will select their economic criterion (Table 5-1, Ch 5, pg 162) a. Neither input nor output fixed b. Fixed input – teams will receive fixed amount of money (or other resource) to make microplastics solution happen/succeed c. Fixed output – teams will promise a certain accomplishment/task result success for their microplastics solution 3) TIME PERIOD FOR ANALYSIS: Teams must determine the useful life of their microplastics solution versus the analysis period (aka planning horizon, project life (duration)). a. Teams must decide upon the analysis period (project duration) – see Ch 5 pg 163 and Ch 16 pg 596 b. Teams must decide between 3 different analysis-period situations for their microplastics solution (Ch 5, pg 163) i. The useful life of each alternative (their microplastics solution) equals the analysis period ii. The alternatives have useful lives different from the analysis period iii. There is an infinite analysis period 1. If so, then teams should be able to calculate Capitalized cost P (see Ch 5 Example 5-6) 4) ALTERNATIVES: Teams must identify what alternatives they are comparing a. Level 1: Basic Level (Required): In this project, all teams should correctly identify that they are comparing their microplastic project with “DO-NOTHING” b. Level 2: Badge Level (Not required; Student Research): Teams identify other alternatives they could compare EGN 3615 | Drs. J. Bartell & J. Chilton | Spring, 2020 2 of 6 PART B: Present Worth Calculations (based on Ch 5) 1) Create Table of Cash Flows for Present Worth Analysis a. Level 1 (Bare Minimum): Teams will use interest rates, analysis period, useful life, and other assumptions determined above, as well as the following list of cash flows below to create their own table of cash flows in Excel Microplastics Project Initial costs of manufacturing microplastics technology Installation costs (design, planning, and construction) Annual costs for operating/maintenance Overhaul cost of microplastics technology every ??? years Annual savings from replacing old technology Annual benefits to community Residual value of benefits after Project Horizon Project Horizon (Duration) Useful Life of Microplastics Technology Interest Rate Economic Information $4,500,000 $11,000,000 $350,000 Teams will determine and fill in based on useful life of their technology $650,000 $1,500,000 $5,000,000 Teams will determine & fill in Teams will determine & fill in Teams will determine & fill in b. Level 2: Badge Level (Not required; Student Research): Students encouraged to add in their own additional costs, benefits, savings, etc. based on their research of their microplastics project 2) Conduct Present Worth Analysis in EXCEL using functions learned – students should come up with value for PW in EXCEL for their microplastic project. 3) Make Economic Decision – Based on your team’s economic analysis, how should your microplastics solution be pursued? Based on whose viewpoint? a. Level 1: Basic Level (Required): Based on calculations, students determine whether private or public investor would choose to go through with project b. Level 2: Badge Level (Not required; Student Research): Teams calculate Benefit-Cost (B/C) Ratio (Ch 16) of their microplastics project. EGN 3615 | Drs. J. Bartell & J. Chilton | Spring, 2020 3 of 6 c. Level 3: Badge Level 2 (Not required; Student Effort): Teams go back and identify any other edits/additions may need to be included to make project more attractive to investors and affect cost-to-benefit ratio. 4) Identify other disbenefits involved in microplastics that may need to be considered in economic analysis (Ch 16 pg 598) 5) Provide a plain-language summary and explanation of your analysis, and discuss the significance and implications of your results. (2-3 paragraphs) PART C: FINAL THOUGHTS 1) In matters regarding the environment, should impacts on our future and public good outweigh any of the economic costs associated? Why or why not? (1-2 paragraphs) 2) Evaluate what will happen if they (i.e. government, community/society, private sector, etc) “DO-NOTHING.” (1-2 paragraphs) 3) Consider the role of ethics in the way calculations are presented. (1-2 paragraphs) a. If you completed Part B, Step 3c: Badge Level 2, also address whether your team included (or considered including) anything unethical in Part B, Step 3c. (~1 paragraph) i. Why did you, or did you consider, this unethical move? ii. What audience impact differences did you consider when making these choices? iii. What do you think the repercussions would be if your audience(s) found out you acted unethically? EGN 3615 | Drs. J. Bartell & J. Chilton | Spring, 2020 4 of 6 Instructions: Completion, Formatting, Submission Completion: Students must complete all required parts of the assignment. However, there are opportunities for completing a more detailed analysis and earning badges. The associated badges for this assignment have a much higher point value than rubric badges for previous assignments. Level Information: • Level 1: Basic Level (Required): This level is the basic level that you are required to complete to earn full points on the assignment. You may complete only this basic level and earn full points on the assignment. • Level 2: Badge Level (Not required; Student Research/Effort); and Level 3: Badge Level 2 (Not required; Student Effort) o These levels are not required. Teams who complete quality work for these levels will qualify for badges. o Your team can earn up to 5,000 points by earning the badges associated with this assignment. o The badges are all directly based on teams completing the tasks, calculations, etc. described in the Level 2 and Level 3 points. o Teams do not need to complete all Level 2 and Level 3 parts of the assignment to earn additional points. How the Extra Points Factor into Your Total Points: Because a more detailed analysis will lead to deeper thought and consideration of your project, and positively affect your ability to communicate about your project, any additional points your team earns from completing Level 2 and Level 3 analysis tasks will be applied to your overall assignment score, and can be allocated to your Dynamic Communication Assignment requirements. This means that conducting a more detailed analysis as part of this assignment can help you earn “buffer points” as part of your team’s 25,000 Dynamic Communication Assignment total. However, it also means that you can make up missed points in other GradeCraft assignments, too (this does not include workshop attendance). Due Date and Accepted Until Dates: The “Due Date” is March 15. The “Accepted Until” date is March 29. • Teams may submit assignments that meet the requirements of Level 1 by the due date to earn associated badges. Teams may even choose to complete some of the Level 2 criteria to ensure they earn enough points if they are aiming for the “High Achievers” badge. • There are no late penalties for submitting after the due date. o The assignment closes on March 29, and no assignments will be accepted after this date. • After the first round of grading, teams may choose to resubmit assignments that meet additional Level 2 and Level 3 criteria. EGN 3615 | Drs. J. Bartell & J. Chilton | Spring, 2020 5 of 6 o If teams choose this path, they will need to clearly communicate this as part of their resubmission. Formatting: • • • • Teams must include their analysis and summary/explanation first, then their answers/discussion for Part C. Teams must include all tables, charts, information, etc. that aid in a clear explanation and understanding of the analysis. It is up to the teams to determine how to translate your Excel completed analysis into professional looking information for consumption by a broad audience. Documents must be well organized and easy to navigate. Submission: • • • Submission must consist of a single document. Teams are advised to convert their documents to PDF format to ensure continuity of formatting (settings in graphical word processing programs, such as Word, may vary between individual computers, which means that a document that looks one way on your computer may be translated completely differently when I open it on my computer). Teams must submit their completed work through GradeCraft. Due Date and Accepted Until Dates: As noted above (and repeated here for emphasis) the “Due Date” is March 15. The “Accepted Until” date is March 29. • Teams may submit assignments that meet the requirements of Level 1 by the due date to earn associated badges. Teams may even choose to complete some of the Level 2 criteria to ensure they earn enough points if they are aiming for the “High Achievers” badge. • There are no late penalties for submitting after the due date. o The assignment closes on March 29, and no assignments will be accepted after this date. • After the first round of grading, teams may choose to resubmit assignments that meet additional Level 2 and Level 3 criteria. o If teams choose this path, they will need to clearly communicate this as part of their resubmission. EGN 3615 | Drs. J. Bartell & J. Chilton | Spring, 2020 6 of 6 ...
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Final Answer

Attached.

Running head: FINAL THOUGHTS

1

Final Thoughts
Student Name
Institution Affiliation

FINAL THOUGHTS

2
Question 1

As it is known, micro plastics pose environmental risks in myriad ways when disposed in
various pools of the earth and left unattended to. It calls for stakeholders in many fields to act
because it matters on the health and entire life of everyone. Environmental impacts on our future
and public good should outweigh any costs associated with the economy because health is
paramount than any economic aspects. There is no need to produce micro plastics that continue
posing health problems; yet, they economic benefits are focused upon. The use of micro plastics,
as a public good is used by humans. Focusing on making profits and compromising the adverse
effects of people would mean having enough profits that would curb any environmental health
problems brought by the same public good.
Giving attention to any environmental impact of micro plastics means taking care of any
economic costs. It is because when a great focus is directed toward managing as well as
conserving public good, least costs are incurred as well as protecting the natural environmental
from degradation. According to The Government of Australia (n.d.), public good conservation,
through ways such as development and implementation of policies, enhance the welfare of all
people while establishing a favorable place for the future generation. Also, conserving public
good through seeking mitigation measures that curb negative effects on the environment creates
a socially responsible society, which in turn, mitigate any economics risks associated with public
good ...

puritymaruga (8089)
New York University

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