A firm is using a machine whose purchase price is Rs 13,000. The installation charges amount to Rs 3,600 and the machine has a scrap value of only Rs 1,600 because the firm has a monopoly of this type of work. The maintenance cost in various years is given in the following table.

The firm wants to determine after how many years should the machine be replaced on economic considerations, assuming that the machine replacement can be done only at the year ends.

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Year 1 2 3 4 5 6 7 8 9 Cost (Rs) : 250 750 1000 1500 2100 2900 4000 4800 6000