6. A new tempo costs Rs 8000 and may be sold at the end of any year at the following prices: Year 1 2 3 4 5 6 Selling Price (Rs) 5000 3300 2000 1100 600 100 (at present value) Operating Cost (Rs) 1000 1200 1500 2000 3000 5000 (at present value) It is not only possible to sell the tempo after use but also to buy a second-hand tempo. It may be cheaper to do so than to replace with a new tempo. Age of Tempo