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You have learned a lot of engineering economic analysis tools as well as many non-economic issues. Now it is time to put it all together.

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You have learned a lot of engineering economic analysis tools as well as many non-economic issues. Now it is time to put it all together. For the scenario below, fully set up the problem and solve the problem using Excel. As a new engineer you designed a cylindrical part that can be made on a screw machine. The screw machine requires an initial investment of $150,000 with annual maintenance of $10,000 also considering two different types of materials 1112 plain steel or brass screw stock. The steel costs $0.50 per pound and the brass costs s0.80 per pound. The part will require about 8 ounces of raw material per unit. In addition, the machine can produce the part in steel at 10 units per hour and 6 units per hour for brass. However, the steel scrap rate is 10% for steel and 15% for brass. Further, you have the opportunity to recycle the scrapped material at $0.25 per pound for brass and S0.40 per pound for steel You expect that the demand will be about 100,000 units per year. Direct labor is $30 per hour with a 20% fringe rate. You can sell the steel product for S7 per unit and the brass product for $11 per unit. The life of the production run is expected to be 10 years. The company's MARR is 15%. What is the best alternative to pursue? You have learned a number of analysis tools to compare two alternatives as well as other issues associate with economic analysis. Using both time value of money analysis and return on investment analysis compare the two alternatives Also apply the other non-economic analysis issues you have learned in this class when considering this scenario. Based on your analysis, what is your recommendation to senior management. After presenting the economic analysis, type a short (no longer than 1 page) executive summary justifying your analysis, explaining your recommendation, as well as including non-economic analysis issues. Submit your Exel work via the elearning dropbox

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