What Is The Major Engineering Major Case Study Answers

Decent Essays
Week 8 Final
Engineering major
School Type Cost 30 Year ROI Annual ROI
Private $221,700.00 $2,412,000.00 8.70%
Private $213,000.00 $2,064,000.00 8.30%
Private $230,100.00 $1,949,000.00 7.90%
Private $222,600.00 $1,947,000.00 8.00%
Private $225,800.00 $1,938,000.00 8.00%
Public $87,660.00 $1,937,000.00 11.20%
Private $224,900.00 $1,915,000.00 7.90%
Private $221,600.00 $1,878,000.00 7.90%
Public $125,100.00 $1,854,000.00 9.80%
Private $215,700.00 $1,794,000.00 7.90%
Public $92,530.00 $1,761,000.00 10.60%
Private $217,800.00 $1,752,000.00 7.70%
Public $89,700.00 $1,727,000.00 10.70%
Private $229,600.00 $1,716,000.00 7.50%
Public $101,500.00 $1,703,000.00 10.20%
Public $115,500.00 $1,694,000.00 9.70%
Public $104,500.00 $1,690,000.00 10.10%
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It is therefore useful to consider the effects of likely changes in the key variables on the viability (EIRR - economic internal rate of return and FIRR - financial rate of return). We can do this performing sensitivity analysis.
The viability of projects is evaluated based on a comparison of its internal rate of return (FIRR and EIRR) to the financial or economic opportunity cost of capital. Alternatively, the project is considered to be viable when the Net Present Value (NPV) is positive, using the selected EOCC or FOCC as discount rate. Sensitivity analysis focuses analyzing the effects of changes in key variables on the project’s IRR or NPV, the two most widely used measures of project worth.
In the economic analysis of the projects, there are also other aspects of project feasibility which may require sensitivity analysis. These include:
1. demand analysis: to assess the sensitivity of the demand forecast to changes in population growth, per capita consumption, prices, etc.
2. least cost analysis: to verify whether the selected least-cost alternative remains the preferred option under adverse conditions
3.sustainability analysis: to assess possible threats to the sustainability of the project
4. distributional analysis: to analyze whether the project will actually benefit the poor.
Sensitivity analysis is particularly concerned with factors and combinations of factors that may lead to
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