7. A truck owner finds from the past records that the maintenance cost of a truck (whose purchase price is Rs 3,00,000) during the first 8 Years of its life and the resale prices at the end of each year, are as follows:

Suggest optimal policy for the replacement of the truck.

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Year Maintenance cost (Rs) Resale price (Rs) 1 36,000 200,000 2 48,000 150,000 3 60,000 100,000 4 72,000 80,000 5 84,000 70,000 6 96,000 60,000 7 108,000 50,000 8 120,000 40,000