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Perfect Temp is a mechanical engineering design firm that specializes in heating and cooling systems for factories and warehouses. What is the client's cash flow diagram for the following costs and savings of an air-to-air heat exchanger?
First cost = $12,000
O&M cost = $2000 more per year Energy savings = $5000 saved per year Heat-exchanger life = 10 years.
Derive an expression for average total cost (ATC). At what quantity is ATC at its minimum (at what ATC level)? In your diagram, sketch ATC and confirm that it is U-shaped. [Hint: Calculate ATC when q=20 and q= 80.]
Gross Domestic Product may accurately be described as
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