6. Determine the optimal replacement period and the average Yearly cost associated with it, in respect of

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6. Determine the optimal replacement period and the average Yearly cost associated with it, in respect of a machine whose details are as follows:

Cost of the machine including installation charges = Rs 4,000 Maintenance charges expected to be paid, Mt= 200 + lOOt + 10t2 (fort= 1, 2, ... , n)

Resale value at the year end, St= 4000 - 500t (fort= 1, 2, ... , 7)

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