ENGG4103 Engineering Asset Management S1 2024 Practical 2 Attach this to your submission. Total Cost of Operation Exercise The objective of this exercise is to compare the total cost of operation of a BEV and equivalently sized hybrid electric vehicle (HEV) car. We have chosen to study the Tesla Model 3 (Long Range) and equivalent Toyota Camry Hybrid Ascent as they represent medium sized family cars. Figure 1(a) Tesla Model 3 and (b) Toyota Camry Hybrid Ascent Source www.carsales.com accessed 25 Apr 2024. Find a student to pair with. Elect one of you to study the Tesla Model 3. The other will study the Toyota Camry Hybrid. A new 2024 Tesla Model 3 costs approximately $76,500. Being an EV, it is exempt of sales tax. A new Toyota Camry Hybrid Hatchback costs around $52,00 including importation duties. The cars will be 80% financed by debt financing at an interest rate of 8%. (i) Use www.carsales.com.au to search for the resale value of used vehicles. Use the following search parameters: 1 Limit the search to vehicles for sale in Queensland. For the Tesla Model 3, limit your search to long range model (this is under the “badge” label). For each model, the search should bring up around 26 vehicles for sale. For the Toyota Camry Hybrid, select all Camry's for sale in Queensland. Selecting the Fuel/Electric label and “Hybrid”. Then uses the “badge" label to select "Ascent". Your search will bring up around 50 vehicles for sale. For each model, collect information on the model year, km and sales price for all the vehicles identified. Input this data into an Excel spreadsheet. Calculate the vehicle age (in years), with 2022 as your reference point (year 0). Show this data in a table. For each model, prepare an x-y scatterplot of vehicle sales price against vehicle age. Fit an exponential curve and display the best fit regression equation and correlation coefficient. What is the value of the best-fit decay coefficient in each case? (ii) (iii) (1 mark) (1 mark) Considering that the vehicles will operate for an average of 15,000 km each year over a 10-year period, use the excel spreadsheet template provided to determine the after-tax residual values for the vehicles. Consider a tax rate of 30%, and linear depreciation over a five-year period. (1 mark) Calculate the Equivalent Annual Cost/km for the capital recovery cost (equal to the loss of value per year plus opportunity cost) of the vehicles. Use a discount rate of 8% (1 mark) (iv) Calculate the interest repayments on the sum of money financed by debt (1 mark) Operating Costs To estimate operating costs, assume that each vehicle will travel 15,000 km per year. The fuel efficiency of a Toyota Camry Ascent is between 4.2 and 9.3 litres/100km in the city - let's assume an average of 6.8 1/100 km. Assume a fuel cost of $2.39 per litre (the average ULP 91 price on 26 April 2024) A Tesla Model 3 Long Range with a 75 kWh usable battery size has a range of 681 km (let's assume 600 km as this is always overstated!) Assume an efficiency of 85% and an electrical cost of $0.30 per kWh in Queensland. Use the maintenance plans and costs that in Assignment 1 to project maintenance costs across 10 year period. Assume no major component change-outs. 2 Summary of expenses Year 2 6 7 8 9 10 Insurance 2,500 2,650 2,809 2,978 3,156 3,346 3,546 3,759 3,985 4,224 Fuel 2441 2441 2441 2441 2441 2441 2441 2441 2441 2441 Oil, lube and filters 1000 1060 1124 1191 1262 1338 1419 1504 1594 1689 Tyres 600 0 600 0 600 0 600 0 0 Engine replacement 0 0 0 0 0 0 0 0 0 0 Transmission/differential 0 0 0 0 0 2500 0 0 0 0 Other Total 5941 6751 6374 7210 6860 10225 7406 8304 8020 8355 (v) Calculate the Equivalent Annual Cost/km for the operating cost disbursements. (1 mark) (vi) Calculate the total EAC/km for each vehicle, and present this graphically over a ten-year period. (1 mark) Determine the economic optimal life for each vehicle (1 mark) Should the company consider early disposal of these vehicles? (1 mark) Compare the minimum EAC/km for each vehicle. From an economic perspective Which vehicle is cheapest to operate? (1 mark) This practical is to be solved individually. Attach a copy of your spreadsheet calculations • Submit via Turnitin by 17:00 hrs on Friday 3rd May • Late penalty - 10% per day up to 7 days maximum, then zero marks. P. F. Knights 25-04-2024. 3/n