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Economic Comparison

This study examines the economic impact of manual and automatic transmissions on the resale value of a 2005 Corvette over five years. Conducted by a team from California State Polytechnic University, Pomona, the research employs Net Present Worth (NPW) and Equivalent Uniform Annual Cost (EUAC) analysis. Our findings reveal that manual transmission offers lower annual costs, better fuel efficiency, and a higher salvage value, making it the preferred choice economically, despite consumer preferences for automatics for non-economic reasons.

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Economic Comparison

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  1. Economic Comparison Team 9: Mel Capistrano, Reynaldo Curiel, and Saurabh Dave California State Polytechnic University, Pomona www.rsportscars.com/eng/cars/corvette.asp

  2. Overview • Team Roster • Objective • Parameters • Method • Conclusion

  3. Team Roster Mel Capistrano Analyst, Organizer, Researcher, and Summarizer Reynaldo Curiel Analyst and Researcher Saurabh Dave Analyst and Researcher Tommy Pouncy(No Longer Enrolled) Formally Organizer and Summarizer

  4. Objective Affect On Resale Value • Manual Transmission • Automatic Transmission joeberkphotography.com

  5. Parameter: Assumptions Consumer • 30 Year Midlevel Engineer • Pomona, CA 91768 • Single Automobile • 2005 Base Model Corvette • Five Years Period • Sold At The End

  6. Analysis: Method Net Present Worth Analysis (NPW) • NPW = PW Cost – PW Benefits Minimize Equivalent Uniform Annual Cost (EUAC) • EUC = P(A/P, i, n) - S(A/F, i, n) • Convert To EUAC Minimum Attractive Rate of Return (MARR) • 5% Based on 5 Year Certificate of Deposit (CD)

  7. Analysis: Scenarios Automatic Transmission NPWC: $51,093.40 EUAC: $11,434.75 Manual Transmission NPW: $50,673.50 EUAC: $11,170.42

  8. Analysis: Sensitivity Affects On NPW And EUC • Mileage • Down payment • MARR • Fuel Costs

  9. Conclusion Winner: Manual Transmission • Lower Annual Cost • Better Fuel Efficiency • Higher Salvage Value Preference For An Automatic • Non-Economic Reasons • City Driving • Convenience

  10. Resources Joe Berk Photography Department Of Motor Vehicles Edmunds.com Essentials of Engineering Economic Analysis Farmers Insurance Group Kelly Blue Book Online Power Chevrolet Automotive Dealership Dr. Phil Rosenkrantz RSportsCars.com

  11. Internet Resources Kelly Blue Book Online http://www.kbb.com • Resale Values Edmunds.com http://www.edmunds.com • Fuel Efficiency BankRate.com - Financing Information

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