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DESCRIPTION: The purpose of the project is to apply the concepts learned in the course to real life problems. Therefore you need to take a

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DESCRIPTION: The purpose of the project is to apply the concepts learned in the course to real life problems. Therefore you need to take a real life problem (such as a particular investment problem - opening a coffee shop in Beikta.) and analyze it from Engineering Economics point of view. Your analysis should consist of but not limited to the analysis following steps. TI Defining the initial, periodic and uniform cost structures for the investment. Defining the monthly/yearly revenues from the investment. In the costs and revenues try to find as realistic values as you can. (For example for the rent of a shop you can use real estate web sites such as "sahibinden.com", "Hurriyetemlak.com" ....Or the number of customers can have increasing pattern up to a limit after which will be flat.) If there are some different alternatives for your investment (rent vs buy a car) use then as seperate mutually exclusive alternatives. According to different sources of funding calculate the WACC. Define a MARR using WACC and risk premium. Compare different alternatives using present/annual worth analysis. Calculate the net present value of your investment. Calculate the rate of return of the investment. Find the payback period. Do breakeven analysis if appropriate. DESCRIPTION: The purpose of the project is to apply the concepts learned in the course to real life problems. Therefore you need to take a real life problem (such as a particular investment problem - opening a coffee shop in Beikta.) and analyze it from Engineering Economics point of view. Your analysis should consist of but not limited to the analysis following steps. TI Defining the initial, periodic and uniform cost structures for the investment. Defining the monthly/yearly revenues from the investment. In the costs and revenues try to find as realistic values as you can. (For example for the rent of a shop you can use real estate web sites such as "sahibinden.com", "Hurriyetemlak.com" ....Or the number of customers can have increasing pattern up to a limit after which will be flat.) If there are some different alternatives for your investment (rent vs buy a car) use then as seperate mutually exclusive alternatives. According to different sources of funding calculate the WACC. Define a MARR using WACC and risk premium. Compare different alternatives using present/annual worth analysis. Calculate the net present value of your investment. Calculate the rate of return of the investment. Find the payback period. Do breakeven analysis if appropriate

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