Professional Documents
Culture Documents
110
Spring
2015
Mel
B.
Taciroglu
Final
Paper
Due:
June
12,
2015,
5:00pm
GREEN
TECHNOLOGY
PROJECT:
As
it
was
put
in
your
textbook,
There
are
many
venture-capital
syndicates
that
consist
of
a
few
(say
eight
or
ten)
wealthy
people
who
combine
to
make
investments
in
small
and
(hopefully)
growing
business.
Typically,
the
investors
hire
a
young
investment
manager
(often
an
engineer
with
an
MBA)
who
seeks
and
analyzes
investment
opportunities
for
the
group.
For
this
project,
acting
as
an
investment
manager,
you
are
going
to
evaluate
a
green
company
(preferably
a
startup
company
or
a
well-established
company
that
ventures
into
new
markets
with
new
ideas).
In
particular,
you
need
to
focus
on
a
certain
green
PRODUCT
the
company
is
producing
that
is
replacing
a
conventional
product.
Examples:
Electric
Vehicles
replacing
Internal
Combustion
Engine
Vehicles,
Led
lights
replacing
conventional
lights,
Solar
Panels
replacing
the
city
power
to
supply
a
residential
houses
energy
needs,
Electric
Hand
Dryers
replacing
paper
towels
etc.,)
The
choice
of
the
company
and
product
is
up
to
you.
Find
something
that
would
contribute
to
your
career
goals.
There
are
three
parts
to
this
project:
I.
Microeconomics:
Make
a
brief
introduction.
What
type
of
an
industry
is
the
company
operating
in?
Oligopoly?
Perfect
Competition?
Monopoly?
Monopolistic
Competition?
Justify
your
choice.
How
does
the
industry
profile
affect
companys
actions?
II.
Project
Evaluation:
From
a
consumers
point
of
view,
consider
all
the
cash
flow
that
is
associated
with
Option
I:
Using
this
company's
green
product
versus;
Option
II:
Using
an
alternative
conventional
product
(that
maybe
produced
by
the
same
or
a
different
company)
Consider
the
NPV
that
corresponds
to
the
discounted
cash
flow
resulting
from
the
usage
of
each
product.
Note
that
neither
the
cash
flow
nor
the
number
of
periods,
the
discount
rate
etc.
are
given
to
you.
You
need
to
use
your
judgment
on
the
specifics
of
your
calculation
and
use
your
best
estimate
with
all
the
relevant
data
that
you
can
find.
You
need
to
do
some
research
and
make
reasonable
assumptions
about
the
quantity
of
the
product
used
by
an
average
consumer
per
period,
number
of
periods,
the
initial
cost,
the
ongoing
costs,
such
as
maintenance,
the
benefits
if
they
are
different
for
the
two
optionsetc.
Consider
all
the
relevant
cash
flow
that
needs
to
go
into
your
calculation
to
make
a
sensible
comparison.
You
also
need
to
determine
the
MARR
(the
discount
rate)
that
would
apply
to
an
average
American
consumer
(see
the
slides
for
Week
8
on
how
to
choose
a
discount
rate,
hint:
what
is
the
cost
of
funds
for
an
average
American
consumer?).
(Extension:
Are
there
any
aspects
of
using
this
product(s),
not
directly
affecting
the
customer
but
that
are
affecting
the
third
parties,
i.e.
externalities.
How
would
your
analysis
change
if
you
included
externalities
in
your
NPV
calculations?)
III.
Macroeconomics:
How
do
you
see
the
future
of
the
green
product
considering
the
macroeconomic
trends
we
are
experiencing?
What
are
the
relevant
factors
for
your
particular
product?
For
example,
for
electric
vehicles,
economic
boom/slowdown,
gas
price
decline/increase
would
be
relevant.)
Guidelines:
This
is
a
group
project.
You
are
expected
to
work
on
this
project
with
your
fellow
classmates.
There
should
be
at
least
4
and
at
most
6
students
in
your
group.
YOUR
PROJECT
WILL
NOT
BE
GRADED
IF
THERE
ARE
LESS
THAN
4
MEMBERS
IN
YOUR
GROUP!!!
The
person
whose
last
name
begins
with
a
letter
closest
to
A
should
submit
the
project.
DO
NOT
SUBMIT
YOUR
PROJECT
MULTIPLE
TIMES!
All
projects
must
be
submitted
in
.PDF
format.
Every
sentence/analysis/comment
should
be
produced
by
you!
Anything
that
does
not
belong
to
you,
need
to
be
in
quotation
marks.
Never
use
other
peoples
work
without
citing
it
in
your
references.
Even
if
you
rephrase/paraphrase
the
ideas
that
are
put
forward
by
somebody
else,
you
need
to
acknowledge
the
originator,
by
putting
the
source
within
parenthesis
or
in
a
footnote
and
by
providing
the
exact
source
in
References
that
needs
to
be
given
at
the
last
page
of
your
report.
You
can
use
APA
standard
for
your
references.
If
any
part
of
your
work
is
directly
copied
from
another
source,
all
the
members
of
the
group
will
get
zero
points.
Your
assignment
should
be
5
to
7
pages,
including
any
tables
or
graphs
you
might
have,
excluding
the
references
at
the
end.
Use
font
Times
New
Roman,
size
12,
single
space.
Your
paper
will
be
graded
on:
1. (20
points)
Clarity
of
ideas:
Make
sure
you
follow
a
logical
sequence
without
including
unnecessary
data/information.
Do
not
repeat
the
same
information
or
idea
in
different
sections
of
your
paper.
2. (70
points)
Usage
of
class
material
and
its
application:
The
objective
of
this
paper
is
to
have
you
think,
come
up
with
an
original
idea,
combine
the
information
you
obtain
from
your
research
with
the
ideas
covered
in
class,
and
synthesize
them.
3. (10
points)
Organization
and
presentation:
Organize
your
ideas
well,
coordinate
with
your
group
members,
have
the
same
font
size/type
throughout
your
paper,
and
create
connections
across
sections
for
coherence.
As
always,
please
email
me
or
come
to
my
office
hours
to
clarify/brainstorm
for
any
part
of
the
project
description
above.