FastPack

Initial Cost $=$ $$20,000$;

Residual Value @ Year $10=$ $$2,000$

$**$Year $1**$

$-$ Operating Costs: $$1,500$

$-$ Maintenance Costs: $$1,500$

$-$ Insurance Costs: $$2,000$

$**$Year $2-10**$

$-$ Operating Costs: Increase by $15\%$ per year

$-$ Maintenance Costs: Increase by $12\%$ per year

$-$ Insurance Costs: Decrease by $$100$ per year

A$.$ Make presumptions if deemed necessary $(5\%)$

$1.$ Make a Flowcharts of the alternatives to be evaluated $(5\%)$

$2.$ Clearly establish decision criterion$(-$ia$)$ according to method$($s$)$ used $(5\%)$

$3.$ Equivalence models necessary as part of the analysis $(5\%)$