Industrial Engineering.

Economic Analysis for Engineers.

Problem #$1$: Lifecycle Cost of an Electric Vehicle

A client is interested in acquiring a BoriCar electric vehicle $($EV$).$ This EV is available in three types: a$)$ Standard, b$)$ Luxury, and c$)$ Special Edition. The client would like to identify which one is the least expensive across the life cycle. For doing this, you are asked to realize a detailed economic analysis for each EV type and make a final recommendation.

After interviewing the client, the following information has been gathered:

$$ The client has a $$6,000$ down payment.

$$ The client plans to sell the EV after $15$ years by $10\%$ of its original price.

$$ The client's budget is constraint to pay up to $$900$ per month for repaying loan.

The following table includes the prices and "fuel" economies for each EV type:

$\backslash$table$[[$Type$,$Price $($$$),$Economia $($kWh$/100$mi$)],[$Standard$,50,000,30],[$Luxury$,55,000,20],[$Special Edition,$60,000,10]]$

Instructions:

Loan Amortization Table $(10pts)$

$$ Calculate the balance amount after the down payment $($in year $0).$

$$ Assume that the loan will be repaid in $66$ months with an annual percentage rate $($APR$)$ of $5\%,$ compounded monthly. Calculate the uniform monthly payments. Include in amortization table the following: period, interest, principal, and balance.

$\backslash$table$[[,,,],[0,,,],[1,,,],[!,!,$vdots,!$],[66,,,]]$

Driving Costs $(5$ pts$)$

$$ Calculate the driving costs at end of first year for each EV type.

$$ Use the given "fuel" economy $($kWh$/100$ millas$).$

$q,1$ UU FIO

Assume an annual distance driven of $15,000$ miles and electricity rate of $$\frac{0\mathrm{.}30}{k}Wh.$

$$ Electricity rate is expected to increase $1\%$ per year.