Engineering economics

You just graduate from AUK and decided to start your own business in Kuwait. You have noticed that very few locations offer a state of the art car wash service that offers super deluxe services. After an intensive research and putting in account the climate in Kuwait and the life style of the majority of population the following alternative have been determined along with their costs and benefits. Assume there are 52 weeks per year. Drive Through Self Service Car Home Service Car Wash Car Wash Wash KD 30000 KD 15000 KD 25000 Salvage Value Annual Operating Expenses Setup Cost (Present) Expected Number of Customers Per Day Annual Maintenance Costs Useful Life in Years Annual Revenue Operating Days Per Week KD 2500 KD 1000 KD 1500 KD 45000 9 KD 2000 KD 25000 KD 65000 9 9 KD 1500 20 KD 8000 KD 3000 20 KD 7000 6 20 KD 3000 6 6 Price Per Car 1. Associated costs 1.5 points) 2. Associated benefit (1 points) 3. Total cost at present (3.5 points) 4. Total benefits at present (3.5 points) (3 points) 5. Apply cost ratio analysis of Alternative A (3 points) 6. Apply cost ratio analysis of Alternative B 3 points) 7. Apply cost ratio analysis of Alternative C (1.5 points) Determine the price per car and plug it in the table (Show your work for full credits- No credits will be given without detailed work) 8. 2. You just graduate from AUK and decided to start your own business in Kuwait. You have noticed that very few locations offer a state of the art car wash service that offers super deluxe services. After an intensive research and putting in account the climate in Kuwait and the life style of the majority of population the following alternative have been determined along with their costs and benefits. Assume there are 52 weeks per year. Drive Through Self Service Car Home Service Car Wash Car Wash Wash KD 30000 KD 15000 KD 25000 Salvage Value Annual Operating Expenses Setup Cost (Present) Expected Number of Customers Per Day Annual Maintenance Costs Useful Life in Years Annual Revenue Operating Days Per Week KD 2500 KD 1000 KD 1500 KD 45000 9 KD 2000 KD 25000 KD 65000 9 9 KD 1500 20 KD 8000 KD 3000 20 KD 7000 6 20 KD 3000 6 6 Price Per Car 1. Associated costs 1.5 points) 2. Associated benefit (1 points) 3. Total cost at present (3.5 points) 4. Total benefits at present (3.5 points) (3 points) 5. Apply cost ratio analysis of Alternative A (3 points) 6. Apply cost ratio analysis of Alternative B 3 points) 7. Apply cost ratio analysis of Alternative C (1.5 points) Determine the price per car and plug it in the table (Show your work for full credits- No credits will be given without detailed work) 8. 2