UNIVERSITI TUN HUSSEIN ONN MALAYSIA

PROJECT
SEMESTER I
SESSION 2022/2023

COURSE NAME : ENGINEERING ECONOMY

COURSE CODE : BNP 10402

PROGRAMME : BNC

SUBMISSION DATE : 23rd JANUARY 2023

DURATION : 5 WEEKS
You and your team are involved in developing a new township that requires green buildings and
infrastructure as part of the development. However, the proposed township needs an additional
capital financing of RM1,500,000. Your team is required to suggest using any of the topics as listed
below as remarks in your sources of financing/funding report that are to be presented to the Board
of Directors:

i. Debt capital – Minimum Attractive Rate of Returns (MARR)

ii. Equity capital – Capital Asset Pricing Model (CAPM)
iii. The Weighted Average Cost of Capital (WACC)
iv. Leased vs. Buy vs. Status Quo Decisions
v. Life Cycle Cost (LCC) Analysis

• In a group of 4-5 members, gather information on one of the topics listed above.
• You are advised to explain in detail how the chosen topic is able to contribute to the
company’s source of capital and its budgeting process.
• Please provide relevant examples to the selected topic.
• The video presentation and submission of group project report is on 23rd January 2023
(Monday).