A firm is considering replacement of machine, the maintenance cost and resale value per year of the machine whose purchase price is Rs. 7000 is given below. When should the machine be replaced?

Elements Of Electromagnetics
7th Edition
ISBN:9780190698614
Author:Sadiku, Matthew N. O.
Publisher:Sadiku, Matthew N. O.
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A firm is considering replacement of machine, the maintenance cost and resale value per year of the
machine whose purchase price is Rs. 7000 is given below. When should the machine be replaced?
Years
2
6.
8.
Maintenance cost in Rs.
900
1200
1600 2
2100 2800 3700 4700 5900
Resale value in Rs.
4000 2000
1200
600
500
400
400
400
Transcribed Image Text:A firm is considering replacement of machine, the maintenance cost and resale value per year of the machine whose purchase price is Rs. 7000 is given below. When should the machine be replaced? Years 2 6. 8. Maintenance cost in Rs. 900 1200 1600 2 2100 2800 3700 4700 5900 Resale value in Rs. 4000 2000 1200 600 500 400 400 400
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