The Simple Engineering Company has a machine whose purchase price is Rs 80,000 The expected maintenance costs and resale price in different years are as given here After what time interval, in your opinion, should the machine be replaced Year Maintenance Cost Rs Resale Value ('000 Rs) 1 1,000 75 2 1,200 3 4 5 6 7 1,600 2,400 72 70 65 3,000 58 3,900 5,000 50 45

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Question: The Simple Engineering Company has a machine whose purchase price is Rs 80,000. The expected maintenance costs and resale price in different years are as

The Simple Engineering Company has a machine whose purchase price is Rs 80,000. The expected maintenance costs and resale price in different years are as given here:

Year Maintenance Cost Rs: Resale Value ('000 Rs): 1 1,000 75 2

After what time interval, in your opinion, should the machine be replaced?

Year Maintenance Cost Rs: Resale Value ('000 Rs): 1 1,000 75 2 1,200 3 4 5 6 7 1,600 2,400 72 70 65 3,000 58 3,900 5,000 50 45

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