Develop the total project cost

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SBM3307 Project Development and Optimisation - Asia Pacific International College

Assessment: Project Report

Assessment Detail
This assessment is a staged submissions assessment, and it should be conducted in two parts. The first part deals with Engineering Economy Evaluation of each alternative and recommending a preferred option to meet the project requirements. The second part of assessment deals with Sustainability and Optimisation

APIC Project Development & Optimisation Pty Ltd is considering and evaluating the various alternatives to purchase 10 small vehicles ( SUV) for upcoming projects. You are part of project managers to investigate engineering economy of this procurement process. You are required to make recommendation which alternative would be a sound capital investment. This would be the base scenario(alternative) for the next part of assessment.

Project details (Part A):
The project requires purchase of 10 small SUV vehicles. To reduce greenhouse gases and pollutant emissions, you are required to consider Electric, Hybrid and Petrol vehicles.

This project is selected to be evaluated due to it sustainability aspect as well. It is in line with

Australian government's policy to focus on addressing environmental impact of climate change.

The first part should focus on cost consideration, estimate cash-flow items both inflows and outflow for each alternative. The bases of estimations for estimates should be given. It is required to decide about interest rate, project life, and other parameters that can affect economic analysis in this activity and apply one of the evaluation techniques to evaluate each alternative and select the best one.

Guidelines for writing project report Part A:
1) Develop the total project cost as well as providing clear work breakdown structures (WBS).
2) Provide details of any assumptions made if needed.
3) Estimation Techniques used.
4) Provide Cash flow diagrams.
5) Economy analysis and evaluation of the project by Present Worth (PW), or Internal rate of return (IRR).
6) Conclusions, findings, reasons for recommendation.

Reference no: EM132964697

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