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ESC 282 – Engineering Economy
Students are expected to present a detailed report of an advanced economic analysis. The report should be in the following format;
• Cover page with the title, your name, student id, and your major.
• First section should be Introduction, and it should cover the background of the project
• Second section should be the main body of your research and it should convey all of the analysis to the end reader.
• Third section should be Results and Conclusion.
Students are encouraged to use Microsoft Excel to create charts and data tables to communicate the findings.
Green energy for your home
You are tired of paying too much for the electricity and it has to stop! Being an engineer, you decided to consider alternative ways of generating clean energy at home. It even gets better, if you buy Nissan LEAF, which is an all-electric car, you will not have to pay for gas any more. Your car will be charged up by the electricity you generate at home.
The financing options for Nissan LEAF can be found at the following link:
http://www.nissanusa.com/leaf-electric-car/index?dcp=ppn.63023882.&dcc=0.240189300#/leaf-electric-car/tags/show/price
Your finances are shown below:
Savings: $20,000.00
Yearly income (before tax): $80,000.00
Certificate of Deposit (i=2%, bi-yearly): $12,500.00
Mortage (monthly, 20 years left to pay off): ($825.00)
Current car value: $14,500.00
Car insurance (bi-yearly): ($600.00)
Property tax (yearly): ($5,000.00)
Utilities (electricity excluded) ($300.00)
Electricity ($85.00)
Gas ($200.00)
Information about the solar panels and their cost can be found/estimated by using the following link.
http://www.wholesalesolar.com/solar-panels.html
Use 3% interest rate throughout your analysis unless otherwise is stated.
The student is expected to consider all of the variables in his/her analysis. A report without tax considerations will loose 20 points. If you think some important information is missing, use your engineering judgment, make assumptions and state them in your report.
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