This assessment is a staged submissions assessment and it should be conducted in two parts. APIC Project Development & Optimisation Pty Ltd is considering and evaluating the various projects and you’re par to of project managers to investigate engineering economy of the following project. You are required to make recommendation whether the project is a sound capital investment or not.
Project details (Part A): To reduce greenhouse gases and pollutant emissions, the project requires installation of new solar system with capacity Of 50KWh electricity per day in a designated site.
This project was selected to be evaluated due to it sustainability aspect. It is also in line with Australian government’s policy to focus more on renewable energy in addressing environmental impact of climate change.
It is required to focus on cost consideration, estimate cash-flow items both inflows and outflow for each alternative. The bases of estimations for estimates should be given. It is required to decide about interest rate, project life, and other parameters that can affect economic analysis in this activity and apply one of the evaluation techniques to evaluate each alternative and select the best one.
Guidelines for writing project report:
1) Develop the total project cost as well as providing clear work breakdown structures (WBS). 2) Provide Cash flow diagrams 3) Provide details of any assumptions made if needed 4) Estimation Techniques used 5) Economy analysis and evaluation of the project by Present Worth (PW), or Internal rate of return (IRR) 6) Conclusions, findings, reasons for recommendation