EGEN 325 – Autumn 2013
Engineering Economics
Semester Project
Your team (3 members) will create (option 1) or buy (option 2) a business related to science, construction, technology or engineering. Your team will work through the following questions presented below. Answer the quantitative questions in the attached Excel file and answer the qualitative questions in this Word Doc below the question being asked (each question will describe where it should be answered). A first draft is due October 25 copies will be returned to allow for revisions with a final draft due November 22. Submit this via D2L dropbox (both Excel and Word Doc).
Option 1
Describe your business
Who are they owners and what is the entity type (LLC, S Corp, C Corp, ect.)
What does it do?
Who are the customers?
Who are the competitors?
What does the industry look like?
Estimate first year sales. Plug this number into the spreadsheet.
Provide two to three sentences explaining how you arrived at this estimate.
Answer the previous questions here (except part 2) if Option 1 was selected.
Option 2
Describe your business
Find a business for sale online (Google a business broker, use Craigslist, ect.)
Who are they owners and what is the entity type (LLC, S Corp, C Corp, ect.)
What does it do?
Who are the customers?
Who are the competitors?
What does the industry look like?
What is the purchase price? Attach the business listing to your final report.
Estimate first year sales. Plug this number into the spreadsheet.
Provide two to three sentences explaining how you arrived at this estimate.
Answer the previous questions here (except part 2) if Option 2 was selected.
The following steps are the same for both Option 1 and Option 2
Compute the sum of all costs involved with starting your business and first year operating expenses (i.e. the costs of equipment and the costs you will incur in the first year of operations). Don’t forget to consider paying yourself a wage to live on,…