Engineering Economy

Investment Project Proposal

Group Name:

Members: Signature:
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Important : This is project JUST an EXERCISE to apply the things learned from the subject. You are FREE to use
any amount for those items that are NOT given…BUT make sure that these are within logical and practical levels.
You may do some small research to verify the values you plan to use. This page is the cover sheet.

1. Description of the Proposed Investment Project

 Brief description of the proposed investment project or idea. (share what your business idea is all about)
 Make sure that its first few paragraphs are written well
 Discuss how you came up with the business idea

2. Business Technical Operations Management

 Include information about the people you intend to hire for the business, the business location, the operating
costs, the equipment suppliers, the sources of raw materials, manpower resources, other expenditures, etc.
 Create a table indicating all the materials needed, how many units or pieces, what will be the cost of each
unit or piece, etc.
 Floor Plan Proposal

3. Project Financing
 Source of funds: Money owned by each business owner summed to P2M
 Projected gains and losses (list of all the possible sources of revenue and expenses and their cost)
 Check the profitability of the business
 Minimum Attractive Rate of Return: 20%
 Case Study Period: 10 years
 Check if the MARR is profitable or not (PW, FW, AW)
 Simulate a CVP or Breakeven Analysis. Determine the required number of products for breakeven for a 1
year period only.
 Make sure that you do not falsely represent your business by making unverifiable claims on this section of
your proposal.

RUBRIC:

Criteria Complied (20) Sufficient (15) Not Complied (10) Rating

Originality (20%)
Completeness (20%)
Presentation (20%)
Correctness (20%)
Timeliness (20%)
Total : Average Rating: