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The opinion of probable costs were
developed in order to estimate a cost for completing the study and to
compare if doing so would add value to a students (my) life. The assumed
values for hourly rates and equipment rental costs come from personal
experience with consultant rates and assume that a consulting firm were
doing the work. Therefore, the final cost resembles what might be
presented in a proposal to a governmental agency that would want to
commission this type of study.
Opinion of Probable Costs |
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Sample Collection |
|
Units |
Estimated Time |
Cost/hr. |
Subtotal Project Costs |
Environmental Scientist |
|
Hr. |
80 |
$75.00 |
$6,000.00 |
Sample Technician |
|
Hr. |
15 |
$50.00 |
$750.00 |
TxDOT Employee |
|
Hr. |
15 |
$50.00 |
$750.00 |
Analytical Analysis |
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Lab Technician/Data Analysis |
Hr. |
48 |
$75.00 |
$3,600.00 |
Equipment |
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Vacuum |
|
Ea. |
1 |
$45.00 |
$45.00 |
Sample Bags |
|
Ea. |
30 |
$8.00 |
$240.00 |
Particle Sizer |
|
Hr. |
15 |
$75.00 |
$1,125.00 |
ICP OES |
|
Hr. |
15 |
$125.00 |
$1,875.00 |
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Project Totals |
$14,385.00 |
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APR |
4% |
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Years to Retirement |
39 |
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Estimated Future Value of Project: |
$16,672.18 |
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Estiamted Future retirement Value with Increased Earning
Potential |
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Increase of an Average of $1000.00 per Year |
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Future Value of Investment: |
$94,025.52 |
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As can be seen from the table above,
the cost of the study including sampling and laboratory time would be in
the neighborhood of Fourteen Thousand Dollars.
The alternatives analysis assumed that
I had $14K and was given the choice to pay for my study and receive a
Masters Thesis, or to put that money into the bank for 39 years. 39
years is the time before I turn 65 and retire. I also assumed that over
the lifetime of my professional career, an MS degree would increase my
earning potential by $1000.00 per year.
Therefore the conclusion is that if I
were to take the $14,385.00 and place them into a bank account for 39
years at an interest rate of four percent, I would only increase my
capital to $16,672.18 after 39 years!
Conversely, if I were to take the
extra $1000.00 that I assumed I would earn every year and invest that
with the same interest rate, I would have $94,025.52 at age 65.
Therefore, it is clearly in my favor to complete the requirements
necessary for the Master of Science Degree.
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