ENGINEERING ECONOMY (BPK 30902)

Assignment 2: Business Planning

1. Instruction

a) This assignment will be carried out in group

b) Each group consists of a maximum of 5 members and must be in the same
section (minimum is 3 members)

2. Things To Do

a) Students are assigned with a general assignment topic as follows:

Application of Engineering Economy Concepts in Initializing New

Business
A group of UTHM graduates intend to set up a new business. In order to
initiate the business, they plan to apply a loan from the bank or related
institution by assuming that they are capable of paying some amount of
money (i. e. RM 15,000 per year) for 5 to 10 years. Assume the loan interest
rate is 3.25 % per annum. The business will gain amount of profit each year.

Apply engineering economy concepts and analysis as follows:

i) Engineering Economy analysis procedure (in selection of new business)
ii) Cost Concept (in selection of location, total cost, break even point and
profit)
iii) Time Value of Money (in loan payment)
iv) Economy Equivalent (in future business expansion plan)

b) Prepare a comprehensive report using proceeding/journal paper format.

Maximum of 20 pages (excluding Appendices).

c) Proposed contents of the report are as follows:

i) Abstract / Summary of the project
ii) Introduction (e.g. business overview, objective and scope)
iii) Analysis
iv) Discussion
v) Conclusion

d) Outcomes
A comprehensive proceeding/journal paper type report
i) Groups are expected to submit their report in Week 14 (during class
hour)
ii) Language: English

3. Assessment criteria (10%)

a) Evaluate the projects feasibility using an appropriate analysis method (A3,
PLO7)
b) Team Work (A3, PLO5)