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A city couple, Joan and John Pollution, would like to buy a small section of land in the woods to be used as a weekend vacation home. Alternatively, they have thought of buying a travel trailer and a four-wheel-drive vehicle to pull the trailer for vacation.

The Pollutions have found a five-acre tract with a cabin, well, etc., 25 miles from their home. It will cost them $30,000, but they expect to sell the acreage for $45,000 in ten years when the children are grown. The insurance, upkeep, etc., costs are estimated at $500 per year, but this weekend site is expected to save the family $50 every day they don't go on a traveling vacation. The Pollutions estimate that, even though the cabin is only 25 miles from home, they will travel 50 miles a day when at the cabin while working on it, visiting neighbors, etc. The Pollution car averages 15 miles per gallon of gasoline.

The trailer and van combination would cost $11,000 and could be sold for $2,000 in ten years. Insurance, maintenance, etc., costs will be $750 per year, but the trailer is expected to save $25 per vacation day. On a normal vacation, the Pollutions travel 300 miles each day. Mileage per gallon for the van is estimated at 60% that of the family car.

Gas costs $0.60 per gallon and the Pollution family want a return of fun and 10% from either investment. Plot the sensitivity of annual equivalents for each plan if the Pollutions' vacation time in the past has been from 6 to 14 days per year. Also compute the break-even number of days per year for the two plans.

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