Reconstruct the equipment replacement model of Example 6.3-1, assuming that a car must be kept in...

  

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Reconstruct the equipment replacement model of Example 6.3-1, assuming that a car must be kept in service at least 2 years, with a maximum service life of 4 years. The plan- ning horizon is from the start of 2001 to the end of 2005. The following table provides the necessary data. Replacement cost ($) for given years in operation Year acquired 2 3 4 2001 3800 4100 6800 2002 4000 4800 7000 2003 4200 5300 7200 2004 4800 5700 2005 5300 Reconstruct the equipment replacement model of Example 6.3-1, assuming that a car must be kept in service at least 2 years, with a maximum service life of 4 years. The plan- ning horizon is from the start of 2001 to the end of 2005. The following table provides the necessary data. Replacement cost ($) for given years in operation Year acquired 2 3 4 2001 3800 4100 6800 2002 4000 4800 7000 2003 4200 5300 7200 2004 4800 5700 2005 5300