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SM textiles, established in the year 1 9 9 5 , manufactures grey cloths with the help of a power loom machine. The cost of

SM textiles, established in the year 1995, manufactures grey
cloths with the help of a power loom machine. The cost of power
loom machine at the time of purchase was Rs.1,40,000. Initially
for the first year, the annual operating cost was Rs.500and then
increased by Rs.2,000 every year. Determine the best year to
replace the power loom machine. (Show calculations from 1995
to 2009).

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