Terotechnology: Concept, Analysis, and Practical Examples

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

1TEROTECHNOLOGY
Table of Contents
Answer to question 1: Report:.........................................................................................................2
Introduction:................................................................................................................................3
Concept of Terotechnology:........................................................................................................3
Company background and context to the case:...........................................................................4
Gaps verified in Lifecycle Costing:.............................................................................................4
Conclusion:..................................................................................................................................5
Answers to the practical questions:.................................................................................................6
Answer to question 2:......................................................................................................................7
Sub part (a):.................................................................................................................................7
Sub part (b):.................................................................................................................................7
Sub part (c):.................................................................................................................................8
Answer to question 3:......................................................................................................................8
Answer to question 4:......................................................................................................................9
Sub part 1:....................................................................................................................................9
Sub part 2:....................................................................................................................................9
Answer to question 5:....................................................................................................................10
References and bibliography:........................................................................................................11
Appendix:......................................................................................................................................12

2TEROTECHNOLOGY
Answer to question 1: Report:
Executive summary:
This report is prepared to explain the concept of investment in capital assets and capital assets
installation, replacement and erection related issues. Terotechnology is the term used for whole
life costing for capital investment. In this report, process of such costing and analysis for a
lifecycle costing has been explained with the help of some practical example. For better
understanding of the topic various calculations, relating to the investment valuation has been
illustrated in details.

3TEROTECHNOLOGY
Introduction:
Business organisations invest capital in various long term and short-term assets for
developing and expanding their volume of business. Those investment opportunities must be
evaluated before making such investment. There are various investment evaluation and project
appraisal techniques, which can be used in doing the same. One more important aspect of the
capital investment is the cost and benefit analysis (Woodhouse 2014). A feasibility study and the
total cost and benefit analysis must be done before investing into a capital asset. In the following
paragraphs such analysis have been illustrated with some practical information taken from the
financial records of Soon Mining Limited.
Concept of Terotechnology:
Terotechnology is a terminology used in investment appraisal and investment opportunity
evaluation. The main concept or theme of the Terotechnology is to evaluate the profitability and
future economic benefit of the asset and costs associated with it. The returns would be generated
throughout the life of the assets and it may need additional expenditure for repair, maintenance,
erection and development of the assets. all those costs and benefits must be assessed and
compared. Based on such analysis the investment decision should be taken. Post the investment
also it needs through lookup and control the keep the profitability in line with the expectation.
There are some other project appraisals or investment valuation techniques, which can be used to
evaluate the feasibility of the investment, such as discounted and undiscounted project appraisal
techniques which includes, NPV, IRR, Payback period, profitability index and so on
(Woodhouse 2014). All these project appraisal method can give an idea about the future
profitability of any investment proposal. Before making an investment in any long term or fixed