Industrial Engineering.

Economical Analysis For Engineers.

PROBLEM #$1$:LIFECYCLE COST OF AN ELECTRIC VEHICLEA client is interested in acquiring a BoriCar electric vehicle $($EV$).$ This EV is available inthree types: a$)$ Standard, b$)$ Luxury, and c$)$ Special Edition. The client would like to identifywhich one is the least expensive across the life cycle. For doing this, you are asked torealize a detailed economic analysis for each EV type and make a final recommendation.After interviewing the client, the following information has been gathered:V The client has a $$6\mathrm{.}000$ down$$ The Client plans to sell the Ey$$ The client's budget is constraint to pay up to $$900$ per month for repaying loan.The following table includes the prices and "fuel economies for each EV type:TypeStandardLuxurySpecial EditionInstructions:$2.$ Driving Costs $(5$ pts$)1.$ Loan Amortization Table $(10$ pts$)$givenafter $15$ years by $10\%$ of its original price.Price $($S$)50,00055,00060,000$ 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 paymentsIncdude in amortization table the following: period, interest, principal, and balance.$-$Period $($month$66$Interest Paid $($$$)3.$ Battery Pack Replacement Cost $(5$ pts$)$Principal Paid $($$$)$ Calculate the driving costs at end of first year for each EV type.Use the aeconomy $($kWh$/100$ millas$)\mathrm{.}1$Economia $($kWh$/100$mi$)1530$Assume an annual distance driven of $15,000$ miles and electricity rate of$$0\mathrm{.}30$KWh$4.$ Net Cash Flow Table and Graph $(30$ pts$)$Plan$20$Electricity rate is expected to increase $1\%$ per year$\mathrm{.}10$Determine the current cost of a battery pack, given that the cost was $$84,000$ about$9$ years agQ and the cost index has reduced from $196$ to $28.$ Calculate the replacement cost at the end of year $10$ by considering that the currentcost is expected to increase $2\%$ per year.There is no salvage value.Balance $($$$)$Elaboratea table with the following column headers: Year, Down Payment, LoanRepayment Plan, Driving Cost, Maintenance Cost, Battery Pack ReplacementCost Salvage Value, ym of Cash Flows.Sumlculate the cash flows of thetable.g$5.$ Present Worth Analysis $(10$ pts$)$Include driving and maintenance cost. Assume that maintenance cost increases$$25$ per year, First year maintenance cost is about $$800.$Calculate the salvage value at the end of the useful life defined by the client.$$ Calculate the sum of cash flows for each year.Plot a cash flow diagram with a legend to distinguish each cash flow category.$($Hint: bar plot, stacked column$)$repayment plan based on the amortizationalvageSum of cash FlowsCalculate the net present value $($NPV$)$ of each alternative based on a real discountrate of $3\%$Make a recommendation to the client about which alternative is the mosteconomical on the long run and explain.Cost $($$$)$