EMAP: Chamber Project

1
EMAP Chamber Project

• Industrial Engineering Section
• Presenters
• Khalfani Hardwick, Megan Missildine, Jacob Brunk

2
Lab Focus

• The focus of this lab was to introduce
  engineering economic design principles to
  incoming UA freshman engineering students
• The principles were applied to the evaluation of
  the feasibility of a theme park at Lake Nichol

3
Experimental Procedure

1. Problem recognition, formulation, and evaluation
2. Development of the feasible alternatives
3. Development of the outcomes and cash flows for
   each alternative
4. Selection of criterion or criteria for evaluation
5. Analysis and comparison of alternatives
6. Selection of the preferred alternative

4
Problem

• Interested in building a water park in the
  vicinity of Lake Nichol
• Assumptions
• roughly 10 acres, water park, roller coaster
• Open Memorial Day to Labor Day
• Similarly sized parks did not have roller
  coasters

5
Problem contd

• Costs (based on assumptions)
• 5 million to construct
• 400K to operate and maintain
• 500K revenue
• 20 year study period
• 7 interest rate
• Evaluated using Present Worth Method

6
Alternatives/Criteria for Success

• Alternatives
• Construct park
• Save money for future projects
• Criteria for Success
• Present Worth 0
• Other Factors Location, Park Structure

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Outcomes

• Park
• Present worth -3,940,598.58
• Park is not economically feasible

8
Outcomes Other Factors

• Comparably sized parks did not have roller
  coasters
• Could result in increased attendance
• Park is not open while population is at its peak
• Park is not easily accessible from highways
• Low visibility

9
Suggestions

• Move park closer to the city
• Tie into another project
• Include in plans for renovation of Downtown
  Tuscaloosa
• Eliminate water park concept
• Utilize traveling carnivals

10
Lessons Learned

• Location is critical for new business
• Money management
• Networking w/ other groups
• Present worth

11
Questions