Chapter 5.2, Problem 1R

Solution

The significance of the given terms is to be explained.

Durability: Durability is defined as an item that should last a long time. The longer the item lasts, the more durable the item will be. Examples of durable items are land, cars, electronic appliances, clothes, and many more.

Service Flow: Service flow is defined as the amount of time that the person can use the product and the value that is placed on that use. If a person went to the market for shopping, the first research is for fabrics that would last long. For example, if a person has bought a dress from the shop and that item lasts for two years and the cost of that item is $400, so the cost per annual service flow will be $200.