1. Specific mathematical models that are used vary in degree of complexity and depend on the system under study. Discuss the types of optimization models used and give some specific examples for static systems and dynamic systems.

2. Why does the optimization of investment need to precede money flow modeling?

Why does comparing alternatives on the basis of first cost only possibly lead to an incorrect selection when life-cycle cost is considered? Why does life-cycle cost optimization in asset procurement reveal the best allocation of scarce resources?