Engineering, Terotechnology

Running head: ENGINEERING, TEROTECHNOLOGY
Engineering, Terotechnology
Name of the Student:
Name of the University:
Author’s Note:

1ENGINEERING, TEROTECHNOLOGY
Table of Contents
Answer to question 1: Report:.........................................................................................................2
Introduction:................................................................................................................................3
Concept and meaning of Terotechnology:...................................................................................3
Concept of Assets Lifecycle Costing:..........................................................................................4
Company background and context to the case:...........................................................................4
Gaps verified in Lifecycle Costing:.............................................................................................5
Conclusion and recommendation:...............................................................................................5
Answers to the practical questions:.................................................................................................7
Answer to question 2:......................................................................................................................8
Sub part (a):.................................................................................................................................8
Sub part (b):.................................................................................................................................8
Sub part (c):.................................................................................................................................9
Answer to question 3:......................................................................................................................9
Answer to question 4:....................................................................................................................10
Sub part 1:..................................................................................................................................10
Sub part 2:..................................................................................................................................10
Answer to question 5:....................................................................................................................11
References and bibliography:........................................................................................................12

2ENGINEERING, TEROTECHNOLOGY
Appendix:......................................................................................................................................13
Answer to question 1: Report:
Executive summary:
This report is aimed at explaining and understanding the process of assets lifecycle costing and
application of Terotechnology in evaluation of long-term investment in capital assets. Every
business organisation invests major part of their capital in long-term capital assets, which helps
in revenue generation for a longer period of time. Before making such an investment in the long-
term capital assets, the costs and revenues associated with such investment must be analysed and
evaluated to make a conscious investment decision. In this report a detail analysis has been done
on the investment evaluation process with reference to the Terotechnology. Lastly the report
concludes with some recommendation for improvement in the investment evaluation and
appraisal process.

3ENGINEERING, TEROTECHNOLOGY
Introduction:
Long-term capital assets are the main part of investment of an organisation, which helps
in manufacturing and revenue generation. It involves huge fund investment and it is mainly long
term in nature. Therefore, to make such a long-term investment every business organisation must
evaluate the feasibility of such investment. The feasibility means the ultimate profitability of the
investment. There must be net earnings generating from such investment after recovering all the
costs and required rate of return (Kaplan & Atkinson 2015). There are various investment
evaluation and appraisal tools and techniques, which can successfully be implemented in every
business organisation to evaluate their long-term capital investment and to make certain
important investment decision related to such long-term investment (Woodhouse 2014). To
understand the process in a better way, the term Terotechnology and the Assets lifecycle costing
has been described with the help of data related to the long term assets and investments of Santa
FE Minerals Limited.
Concept and meaning of Terotechnology:
Every long-term capital investments generate revenues throughout its useful life and it
requires additional investment time to time to keep the capital assets in productive condition as
well. Therefore, the revenues would be generated throughout the life of the assets and the
expense on such investment continues after the initial investment in such a capital assets. To
make a conscious investment decision all those costs which has been incurred and which needs
to be incurred in future must be analysed in comparison with the benefits or revenues generated
or expected to be generated from such assets (Kaplan & Atkinson 2015). There may be certain
changes and fluctuations in the future earnings and futures investments and costs associated with
such investment. All those costs and benefits associated with the investment in such a long term