1. If MARR is 12% per year, determine the annual breakeven gallonage for a study period of 5 years

Method	A	B
Fixed Cost per year	$400,000	$750,000
Variable cost per 1000 gallons	$60	$40 the first year decreasing by 3 each year

2. Determine the Economic Service Life (ESL) at 10% per year for a machine that has a first cost of $100,000 with the data below

Year	AOC	Market Value
1	-$1000	$7000
2	-$1200	$5000
3	-$1500	$4200
4	-$2000	$3000
5	-$3000	$2000