Question

A machine costs Rs.500. Operation and maintenance costs are zero for the first year and
increase by Rs.100 every year. If money is worth 5% every year, determine the best age at
which the machine should be replaced. The resale value of the machine is negligibly small.
What is the weighted average cost of owning and operating the machine?

Answer 1

Answer:

increase by rs 100 every year if money is worth 5% every year determine the best age at which the machine should be replaced . the resale value of the machine is negligible small. what is the weighted average cost of the machine