Suppose it costs $17,000 to buy a new machine. The following table shows the annual cost of use and resale value of the machine for different years of age.

Machine age (years) 1 2 3 4 5 Resale price at the end of the year (dollars) 7,000 6,000 4,000 3,000 2,000 Operating cost during the year (dollars) 700 600 1,000 1,200 1,700

Build the mathematical model to determine the optimal replacement policy that minimizes the net costs of owning and using the machine for the next five years and obtain the optimal solution using LINDO Software.