INTRODUCTION: The expansion in key industries such as aerospace and automotive drives up the demand for high quality electromechanical components. Current electromechanical components produced do not meet the industry quality standards or they are priced at higher than average due to specialized manufacturing processes.

PURPOSE: This poster showcases the economic feasibility of setting up an electromechanical facility that manufactures component according to industry standards. This economic feasibility study is done using a plant investment graph for making economic decisions with the help of financial tools such as the 3 financial statements, financial ratios, and sensitivity analysis. This study examines financial investment using: 1) payback period, 2) internal rate of return (IRR), 3) profitability index (PI), and 4) net present value (NPV).

METHODS: This study sees the development of a plant investment graph to test the economic feasibility of an electromechanical manufacturing facility where the cashflow is compared against time. A 3-statement financial model will be used to calculate the costs such as R&D, plant investment, and working capital to calculate payback period, capital recovery, and profitability index (PI) during operation of the facility.

RESULTS: Using the financial statements on an annual basis, the graph shows the cash flow shifting from negative to positive over time. Initial investment is large even before starting the plant operation, however the payback period is within reasonable risk. Beyond the break-even point, profitability is achieved aiding in the recovery for land and working capital.

CONCLUSION: Financial tools and calculations that go into developing the investment graph are obtained from this study show that starting an electromechanical facility is economically feasible and manage to adhere to industry standards while keeping the cost as low as possible. The graph visualizes the feasibility comprehensively covering all aspects and risk of starting an electromechanical manufacturing facility.