9. The maintenance costs and the resale price ofmachineMwhose purchase price is Rs 12,000 are given as:

(i) Suggest optimal period for the replacement of the machine.
(ii) When this machine is 2 Years old, another machine N, which is a new model of machine M, is available. The optimal period for replacement of this machine, N, is 4 Years, with an average cost of Rs 4,700. Should we change machine M with N? If so, when?

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Year 1 2 3 4 5 6 7 Maintenance cost (Rs) 2,600 3,000 3,400 4,000 4,700 5,600 6,600 Resale price (Rs) 7,000 4,500 3,250 2,600 2,400 2,400 2,400