Question

	Birdie	Rooster
First Cost	$95,000	$120,000
Annual Maintenance	$3,000	$9,000
Salvage Value	$12,000	$25,000
Life in years	3	6

Need to Find AEC and CR

Using some of the information from problem one on the Rooster:

N=6

i=10%

However: I, S, O&M are as follows (functions of x:)

I=$120000*x²

S = $25,000*x²

O&M = $9,000/x³

First, determine by hand the minimal annual cost. Secondly, generate a plot that has three line: AEC, CR, and O&M. Plot between 0.7 <= x<=1.1. Note: don't worry about units.

AEC -> Annual Equivelent Cost

CR -> Captial Recovery

O&M -> Operations & Maintenane

S -> Salvage

I ->Inital Cost

Answer 1