IET 30800 Engineering Project Management Economic Analysis

2iet 30800engineering Project Management Economic Analysisassignment

Show your work when doing calculation and also, draw a cash flow diagram for each question. Type formulas and make sure in include units. Alternatively, you can write your answer and either scan it or take a picture and insert it into a Word document. · Submit the assignment in Black Board only ( Only MS Word or PDF file. Don’t use the textbox in Blackboard to write your answers). No in-class submission.

Due: Tuesday, , by class time in Blackboard - Dfs Title of Paper Student name Columbia Southern University STRENGTHS · Insert strengths in a bulleted list. Make sure to provide a brief explanation of how each element affects the company. WEAKNESSES · Insert weaknesses in a bulleted list. Make sure to provide a brief explanation of how each element affects the company. OPPORTUNITIES · Insert opportunities in a bulleted list.

Make sure to provide a brief explanation of how each element affects the company. THREATS · Insert threats in a bulleted list. Make sure to provide a brief explanation of how each element affects the company. You will begin your discussion of the SWOT analysis here. The length of your paper should be at least three pages (not including the title and reference pages).

Be sure to address the questions listed in the assignment instructions as part of your response. Include references on a separate reference page. References

Paper For Above instruction

Introduction

The integration of engineering project management and economic analysis is critical to ensuring the successful initiation, planning, execution, and closure of engineering projects. This paper explores essential financial tools, such as cash flow diagrams and relevant formulas, to evaluate project viability, including the application of SWOT analysis to assess internal and external factors influencing project success. The discussion emphasizes the importance of meticulous calculations, proper documentation, and strategic planning in engineering project management, supported by scholarly references.

Economic Analysis in Engineering Project Management

Engineers and project managers rely heavily on economic analysis to determine the feasibility and profitability of projects. This involves calculating cash flow diagrams, which visually represent inflows and outflows of cash over time, aiding decision-making processes. Drawing accurate cash flow diagrams requires understanding the timing, magnitude, and nature of cash movements, often incorporating formulas like Net Present Value (NPV), Internal Rate of Return (IRR), Payback Period, and Benefit-Cost Ratio (BCR). For example, NPV is computed as:

NPV = ∑_t=1^N (Cash Inflow_t - Cash Outflow_t) / (1 + i)^t

where i is the discount rate, and t is the year. Precise calculations guide project decisions, ensuring resources are allocated efficiently and investments are viable.

Financial Tools and Diagrams

Cash flow diagrams are essential visual aids that depict the amount and timing of cash movements. They help identify periods of negative cash flow that may require financing and periods of profitability. Formulas such as the internal rate of return (IRR) and payback period further assist in evaluating investment attractiveness. For example, the PAYBACK PERIOD is the time needed to recover the initial investment, calculated by summing cash inflows until they equal the initial cost.

SWOT Analysis in Project Management

A comprehensive SWOT analysis examines internal strengths and weaknesses, along with external opportunities and threats, influencing project outcomes and strategic decisions. Conducting SWOT involves identifying elements like skilled workforce (strength), limited resources (weakness), emerging market trends (opportunity), and regulatory changes (threat). Each element impacts project planning — strengths enhance competitiveness, weaknesses can cause delays, opportunities can open new markets, and threats may necessitate contingency planning.

Application of SWOT

The SWOT analysis begins with gathering relevant information about the project environment. Strengths such as advanced technological capabilities or a highly skilled team positively influence project execution by increasing efficiency and innovation. Weaknesses, such as limited financial resources or inadequate infrastructure, can hinder project progress. Opportunities like favorable government policies or technological breakthroughs can provide competitive advantages, while threats such as economic downturns or supply chain disruptions pose risks.

Conclusion

Integrating detailed economic analysis with strategic assessment tools like SWOT empowers engineers and project managers to optimize project outcomes. Accurate financial calculations through cash flow diagrams and related formulas enable sound investment decisions, while SWOT analysis facilitates strategic planning and risk management. Ensuring meticulous documentation, clear presentation of calculations, and strategic foresight are essential components for engineering project success.

References

• Arnold, G., & Sgroi, D. (2016). Corporate Financial Analysis: Strategies for Success. Routledge.
• Brealey, R. A., Myers, S. C., & Allen, F. (2017). Principles of Corporate Finance (12th ed.). McGraw-Hill Education.
• Kerzner, H. (2017). Project Management: A Systems Approach to Planning, Scheduling, and Controlling. Wiley.
• Ross, S. A., Westerfield, R. W., & Jordan, B. D. (2018). Fundamentals of Corporate Finance (12th ed.). McGraw-Hill Education.
• Sullivan, W. G., Wicks, E. M., & Koelling, C. P. (2014). Engineering Economy. Pearson.
• Kerzner, H. (2013). Project Management: A Systems Approach to Planning, Scheduling, and Controlling. Wiley.
• Dobson, J., & Pearce, A. (2013). Financial Analysis and Planning: A Strategic Approach. Routledge.
• Kelley, S., & Kelley, T. (2016). The Elements of Technical Writing. Pearson.
• Harvard Business Review. (2015). Strategies for Effective Strategy Development. Harvard Business Publishing.
• Project Management Institute. (2017). A Guide to the Project Management Body of Knowledge (PMBOK® Guide). PMI.