Metal recyclers needs to purchase a new magnetic pickup device for moving scrap metal around the yard. The complete device will cost $62,000 and have an 8 year life and a salvage value of $1500. Annual maintenance, fuel and overhead costs are estimated at $ 0.50 per metric ton moved. Labor cost will be $8 per hour for regular wages and $12 for overtime. A total of 25 tons can be moved in an 8 hour period. The salvage yard has handled in the past anywhere from 10 to 30 tons of scrap per day. If the company uses a MARR of 10%

Requried

plot a graph the sensitivity of present worth of costs to the annual volume moved. Assume the operator is paid for 200 days of work per year.

Use a 5 metric ton increment for the graph.