10. A company is intending to purchase a small machine in the near future. It is not necessary that a new machine be purchased and for economic considerations estimates of selling and purchasing prices from new to 5 years' old have been obtained. These are displayed in the following table along with information on the estimates of maintenance costs

The cost of a new machine is Rs 4,000. What would be the best replacement policy?

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Year end Maintenance cost Selling price Purchase price : 1 2 3 4 5 192 244 308 384 496 : 3,360 2,880 2,440 2,080 1,800 3,720 3,160 2,680 2,280 1,880