Question $12$: An engineer is trying to decide between two ways to pump concrete up to top floor of a seven storeyed building under construction. Plan$-1$ requires the purchase of equipment costing Rs $300,000$ and costing between Rs $20$ per ton and Rs $35$ per ton to operate with the expected cost of Rs $25$ per ton. The asset is able to pump $100$ tons per day. If purchased, the asset will last for $5$ years, have no salvage value, and be used for $50$ to $100$ days per year. Plan$-2$ is an equipment$-$leasing option and is expected to cost Rs $1,25,000/-$ per year for equipment with an optimistic cost of Rs $90,000/-$ and a pessimistic value of Rs $1,60,000/-$ per year. In addition, a Rs $250/-$ per hour labour cost will be incurred for operation of the leased equipment.

Plot the equivalent uniform annual cost $($EUAC$)$ of each plan versus total annual operating cost or lease cost at i$=12\%.$ Determine which plan should be selected for a use of:

$50$ days per year.

$100$ days per year.