Question: (5) Assume that for a basic age replacement model total maintenance costs for 6 years of operation are estimated to be 8500 TL. Replacement cost

(5) Assume that for a basic age replacement model

(5) Assume that for a basic age replacement model total maintenance costs for 6 years of operation are estimated to be 8500 TL. Replacement cost per equipment is 35000TL. Assuming a linear maintenance cost rate, a) Find the value of a. b) Determine the optimal age at which the equipment should be replaced

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