Recent Question/Assignment

Assignment Aim
To understand and apply the processes for life cycle costing.
Assignment Details
You are contemplating the purchase of a newvehicle for family use. You are to choose a brand new petrol and a brand new hybrid vehicle and perform a Life Cycle Costing calculation using the Net Present Value method to determine their life cycle costs, over a period of 5 years using a car loan). ( note: try to choose the same manufacturer and model of 1 hybrid and 1 petrol vehicle )
As the vehicle is for private use only you should ignore any tax implications in your life cycle costing, but must consider the resale value.
As a minimum you must provide the following information:
? a detailed description of ALL your assumptions
? a detailed explanation and breakdown of all costs and values used in your costing (do NOT use published all-inclusive rates per kilometre for running expenses)
? sources for ALL the data used (with sources proven by screen shots).
? a comprehensive explanation (with sources, proven by screen shots) for your choice of discount rate and method for handling inflation
? a single A4 spreadsheet per LCC which shows all the relevant costs and values for the full life cycle as well as the discounting calculations. The spreadsheets are to be in landscape layout, titled and use the following general layout for information: A example will be posted on BB.
? a detailed commentary on the outcome of the life cycle costing exercise, identifying total ownership costs of the vehicle petrol vs hybrid.
The assignment is to be presented in the form of a report (including an executive summary, numbered sections and headers and footers). The number of words must be between 2400 and 3400 in total (including any tables, contents page, headers, footers and references, but excluding the cover sheet, screen shots and the A4 spreadsheet). The word count must be stated on the front cover. Student marks for the assignment will be reduced where the assignment is outside the word count maximum or minimum. The amount of penalty will be related to the number of words (deduct 5 marks if up to 200 words over or under, 10 marks if 201-400 words over or under, 20 if 401-600 words over or under, 50 marks if more than 600 words over or under).
Assignment Format
The assignment must be in one-and-a-half space typing using arial font 11. All pages should be numbered. All assignments should be thoroughly checked for typing, spelling and grammatical errors before being submitted. All assignments are to be submitted electronically through Turnitin (in Blackboard). All spreadsheets etc must be embedded within the submitted file ie no not submit them separately. Do NOT submit hard copy versions or send copies via email.
Dates: Check UO and BB


Component Value % Evaluation out of 5 Total
Executive summary 5 1 2 3 4 5
Introduction 5 1 2 3 4 5
Assumptions (adequacy and clarity) 10 1 2 3 4 5
List of costs (depth of detail and adequacy) 20 1 2 3 4 5
Sources for all items (adequacy and calculations) 15 1 2 3 4 5
Treatment of car resale (appropriateness and accuracy) 10 1 2 3 4 5
Use of NPV process (understanding methodology) 10 1 2 3 4 5
Discount rate (sourcing, appropriateness and calculation) 5 1 2 3 4 5
Conclusion 10 1 2 3 4 5
Presentation 10 1 2 3 4 5
For Grader’s comments refer to Blackboard

Editable Microsoft Word Document
Word Count: words including References

Note: It is based on previous assignment

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