My friend Estela drives a 2011 Honda Cr-V LX 2WD with = 95,000 miles. Unfortunately, she had a minor accident early in the year which triggered the airbags, and a minor dent on the right front. She knows you are studying how to make good decisions based on money and engineering. The Cr-V still drives but Estela wants to either fix it or get another vehicle. Your job is to help Estela decide what to do. Estela knows she has several options: 1. Buy a new vehicle, and a. Sell the '11 Cr-V as is. b. Trade in the '11 Cr-V C. Fix the Cr-V to sell privately. 2. Buy another 'newer' used vehicle, and a. Sell the '11 Cr-V as is. b. Trade in the '11 Cr-V C. Fix the Cr-V to sell privately. 3. Fix the '11 Cr-V and keep it for the next five years. 4. Another yet to be specified idea/combination 1. Estimate 6 costs of ownership over the next 5 years. Estela knows the car is aging, so at least two of your cash flows need to be gradient cash flows. a. Explain each of your estimates (e.g. if the salvage value is $3,000.00, explain why). b. Be realistic on costs. As you research fixing costs, you should be able to get estimates. Make sure you fully cite your sources i.e. you must cite the body shop you contacted. C. For maintenance costs, there are many sources of information about for the specific vehicle you select (library, internet, local mechanics...). The more specific your information is to this car, the better. 2. Compute the EUAC, showing work. 3. Now incorporate uncertainty into two of your estimates (each with three or more outcomes). Again, explain your estimates. Compute the expected value and standard deviation of EUAC. 4. Perform sensitivity analysis on 2 project parameters (different from the parameters used in part 3) which do not affect total EUAC linearly. Support your explanation of the sensitivity. 5. Propose a reasonable alternative, e.g. buy a used car, or buy a new car. Specify the make and model, including a picture, and repeat steps 1-3 for this alternative. Now, compare the alternatives by any method you choose, e.g. MIRR, NPW, etc. Which alternative would you choose? Make sure you justify your answer. My friend Estela drives a 2011 Honda Cr-V LX 2WD with = 95,000 miles. Unfortunately, she had a minor accident early in the year which triggered the airbags, and a minor dent on the right front. She knows you are studying how to make good decisions based on money and engineering. The Cr-V still drives but Estela wants to either fix it or get another vehicle. Your job is to help Estela decide what to do. Estela knows she has several options: 1. Buy a new vehicle, and a. Sell the '11 Cr-V as is. b. Trade in the '11 Cr-V C. Fix the Cr-V to sell privately. 2. Buy another 'newer' used vehicle, and a. Sell the '11 Cr-V as is. b. Trade in the '11 Cr-V C. Fix the Cr-V to sell privately. 3. Fix the '11 Cr-V and keep it for the next five years. 4. Another yet to be specified idea/combination 1. Estimate 6 costs of ownership over the next 5 years. Estela knows the car is aging, so at least two of your cash flows need to be gradient cash flows. a. Explain each of your estimates (e.g. if the salvage value is $3,000.00, explain why). b. Be realistic on costs. As you research fixing costs, you should be able to get estimates. Make sure you fully cite your sources i.e. you must cite the body shop you contacted. C. For maintenance costs, there are many sources of information about for the specific vehicle you select (library, internet, local mechanics...). The more specific your information is to this car, the better. 2. Compute the EUAC, showing work. 3. Now incorporate uncertainty into two of your estimates (each with three or more outcomes). Again, explain your estimates. Compute the expected value and standard deviation of EUAC. 4. Perform sensitivity analysis on 2 project parameters (different from the parameters used in part 3) which do not affect total EUAC linearly. Support your explanation of the sensitivity. 5. Propose a reasonable alternative, e.g. buy a used car, or buy a new car. Specify the make and model, including a picture, and repeat steps 1-3 for this alternative. Now, compare the alternatives by any method you choose, e.g. MIRR, NPW, etc. Which alternative would you choose? Make sure you justify your