Use app×
Join Bloom Tuition
One on One Online Tuition
JEE MAIN 2025 Foundation Course
NEET 2025 Foundation Course
CLASS 12 FOUNDATION COURSE
CLASS 10 FOUNDATION COURSE
CLASS 9 FOUNDATION COURSE
CLASS 8 FOUNDATION COURSE
0 votes
835 views
in Statistics by (62.7k points)

The capital cost of a machine is Rs. 10,500. Its resale value is Rs. 500. The maintenance costs are as follows:

When should the machine be replaced?

1 Answer

+1 vote
by (57.2k points)
selected by
 
Best answer

Given: P = 10,500, Sn= 500 and so (P – Sn) = (10,500 – 500) = 10,000 is fixed for all the years.

From the above table the annual average maintenance cost A(n) is minimum for n = 5, is the optimal period for replacement of the machine and A(5) = Rs.3,660/-

Welcome to Sarthaks eConnect: A unique platform where students can interact with teachers/experts/students to get solutions to their queries. Students (upto class 10+2) preparing for All Government Exams, CBSE Board Exam, ICSE Board Exam, State Board Exam, JEE (Mains+Advance) and NEET can ask questions from any subject and get quick answers by subject teachers/ experts/mentors/students.

Categories

...