In the table below are the calculations of the total and average cost of an engineering equipment during eight years of service. Explain by drawing the relationship between the average annual cost with years of service, and in which year it is Gastric replacement?
 

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Years service (n) 2 3 5 6 7 8 Purchase price scrap C-S 6000 6000 6000 6000 6000 6000 6000 6000 Annual maintenance cost f(t) 100 250 400 600 900 1200 1600 2000 Summation Total cost C- of S+ maintenance [10 [c-s+f0] fo f(t) 1=0 100 350 750 1350 2250 3450 5050 7050 6100 6350 6750 7350 8250 9450 11050 13050 Average annual cost 6100 3175 2250 1837.50 1650 1575 1578 1631 Years service (n) 2 3 5 6 7 8 Purchase price scrap C-S 6000 6000 6000 6000 6000 6000 6000 6000 Annual maintenance cost f(t) 100 250 400 600 900 1200 1600 2000 Summation Total cost C- of S+ maintenance [10 [c-s+f0] fo f(t) 1=0 100 350 750 1350 2250 3450 5050 7050 6100 6350 6750 7350 8250 9450 11050 13050 Average annual cost 6100 3175 2250 1837.50 1650 1575 1578 1631

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To draw the relationship between the average annual cost and years of service we can plot the averag... View the full answer