ENgineering Economics Project

Why is this an economic issue?  Example: Newspaper recycling, into packaging material Background • Recycling and the importance of process: metals • Current silver spot price ~ $0.84 CAD per gram • Current aluminum scrap price:~$0.26 per lb • What about the costs of each operation as a business?

Can you recover money easily from both?  How many cups of coffee does Tim Horton’s sell in Canada on an annual basis?  Are coffee cups recyclable? • Treasure X Aliens Unboxing • https://www.youtube.com/watch?v=_Z PSmPcYU40 Background Term Project • Pitch a recycling operation that could be viably implemented at a community or city level (such as a station at a 4R depot, neighborhood level or community center collection system). https://janicelukes.ca/blog/brady -4r-winnipeg -depot -is-simple - and -effective/ https://www.cbc.ca/news/canada/manitoba/new -pacific -4r-winnipeg -depot -1.3953392 Using the 9 steps of decision making: Term Project 1. Provide a brief background on why the economics of recycling is important to consider:  Underlining the perils of only focusing on the social and environmental pillars of sustainability . Term Project 2. Come up with a proposed system to accept , and process a certain type of recyclable good . Goods that are accepted:  Should have a constant supply capable of running the operation.  Should be recycled , not reused .  Must be processed in a local (in the context of the country) facility.  Are goods that are not received or processed at 4R depot Term Project 3.Create 3 viable economic options that can be analyzed for how your recycling operation would work over a time span of 5 years . 4. Apply principles in the class such as the time value of money , inflation , and other economic analysis tools to refine your options. 5. Use the analysis tools taught in the class to analyze your options and perform a formal analysis. Term Project In your analysis, a few key constraints/guidelines should be considered:  Projects must have a " recycling " component to them and cannot focus on collection and re -use  The cost of capital (interest) for all analysis should be determined based on municipal rates that are typically used for infrastructure projects via City of Winnipeg or the Manitoba government. Term Project Constraints and Guidelines  Any type of economic analysis can be used  Your mark will be based on using the tools taught in class to approach this problem • A typical consideration of an option will include determining lifespan, NPV , IRR (if applicable), and looking at considerations of risk , sustainability , and other economic aspects. Term Project Constraints and Guidelines • A report with UP TO 15 pages including:  1 page (title) indicating who is submitting this project, with a title relevant to the topic  1 page for an introduction and summary  1 page for a conclusion/recommendation  1 page for references (needed for all sourced values/information – in APA, MLA or Chicago style)  The remainder of the pages can be used as you see fit to present analysis. Term Project Deliverables • All information presented in the body of the report (not the appendix) must be typed (no hand written portions) and should be in a maximum of 12pt font (Times New Roman or equivalent) • For any recycling operation you pick, there IS at least one aspect that you can approach with the economic problem solving approach taught in class.  This would mean setting up options, modelling them, analyzing them using various analysis tools, and making a decision from an economic perspective, it's expected that somewhere in the report you'll have this Term Project Deliverables The report will be marked as follows:  15% of your grade will come from technical communication /English.  5% of your grade will come from determining the ‘ cost of capital ’ for your project.  10% of your grade will come from defining your problem and constraining it to a form that you apply a reasonable economic analysis to. Term Project Marking Guidelines  50% of your grade will come purely from the quality of your analysis.  Your analysis should be clear, and show all assumptions and factor in risk wherever possible. If you're uncertain about numbers, a researched reference is a good start. • Note that this means that if you're evaluating an NPV there should be a clear indication of how you did it (not just writing that everything was computed from an excel spreadsheet). Spreadsheets for NPV analysis can be included in an appendix to your report. Term Project Marking Guidelines  10% of your grade will come from drawing a reasonable economic conclusion  10% of your grade is an overall mark looking at how well you tied the analysis together to present your work • This assignment is expected to be done either individually or in a pair • Any examples of plagiarism of academic dishonesty in the submission of this report will be handled under the guidelines provided in the course outline (not a good idea). Term Project Marking Guidelines Excellent Good Satisfactory Needs work Technical Communication 15 13 9 5 /15 Initial Feedback Excellent writing skills, you've tied in your sections well in a fluid manner, reads like a good engineering report. Good writing, some minor issues that impede the flow of the writing and understanding, but overall good. Acceptable writing, could use work to develop writing/tech comm skills to ensure that the work you've done is adequately represented. Writing skills need work Cost of Capital 5 4 3 0 /5 Initial Feedback Well researched, well done! Good work done on the cost of capital, you might want to refine this a bit more for it to be considered excellent! Some work done in researching cost of capital, but needs work. Had you considered researching what is used in practice. No reference provided for cost of capital, little to no work done into researching it. Problem Definition 10 8 6 0 /10 Initial Feedback Problem is excellently defined and well framed as a practical problem. Problem is well defined, and has made some practical considerations as well. Problem definition needs work, has structural issues that affect the rest of the analysis. Missing component or very poorly done. Economic Conclusion 10 8 6 0 /10 Initial Feedback Conclusion is excellent and exceeds expectations! Conclusion is good, analysis is also good, very good work overall! Conclusion needs some work and has weak support that is not accounted for. Conclusion needs work and does not accurately reflect the conclusion expected of the analysis. Overall Report Presentation 10 8 6 0 /10 Initial Feedback Excellent report, looks like what a proper engineering report should be flows nicely. Good report, some minor issues but nothing to detract from the overall presentation. Some work could be done on tying elements of the report together. Some issues in integration that detract from the overall report. Needs work to be considered an engineering report. Overall report integration is lacking. Term Project Marking Guidelines Economic Analysis Excellent Good Satisfactory Needs work Score Cost Analysis 10 points 8 points 7 points 0 points / 10 Analysis Quality 40 points 35 points 28 points 10 points / 40 Overall Score Excellent Very Good Satisfactory Developing Needs work 90 or more 80 or more 70 or more 60 or more 0 or more Term Project ENG 3000 – Engineering Economics © Farhoud Delijani, 2020