A. Make presumptions if deemed necessary (5%) Assume that the FastPack will be used for 10 years. Assume that the operating costs, maintenance costs, and insurance costs will remain constant for each year, except for the years specified in the problem. Assume that the residual value of the FastPack at the end of the 10-year period is $2,000. B. Make a Flowcharts of the alternatives to be evaluated (5%) Code snippet 1 graph TD 2 A[Evaluate the cost of purchasing and operating the FastPack] --> B{Ye 3 AC{No, do not purchase the FastPack} 4 C. Clearly establish decision criterion(-ia) according to method(s) used (5%) The decision criterion for this problem is to minimize the total cost of ownership (TCO). The TCO is the sum of the initial cost, the operating costs, the maintenance costs, and the insurance costs, minus the residual value. D. Equivalence models necessary as part of the analysis (5%) Explanation: An equivalence model is a mathematical model that can be used to compare two or more alternatives. In this case, the equivalence model is the TCO. The TCO can be calculated using the following formula: TCO Initial cost + (Operating costs + Maintenance costs + Insurance costs) - Residual value where: " " Initial cost is the initial cost of the FastPack. Operating costs are the annual operating costs of the FastPack. Maintenance costs are the annual maintenance costs of the FastPack. Insurance costs are the annual insurance costs of the FastPack. Residual value is the residual value of the FastPack at the end of the 10-year period. Using the given information, we can calculate the TCO for the FastPack as follows: TCO = $20,000+(10x ($2,000+ $1,500+ $1,000)) - $2,000 = $90,430.54