The data collected in running a machine, the cost of which is Rs 60,000 are given below: Year 1 2 3 4 5 Resale Value 42,000 30,000 20,400 14,400 9,650 Cost of spares 4,000 4,270 4,880 5,700 6,800 Cost of labour 14,000 16,000 18,000 21,000 25,000 Determine the optimum period for replacement of the machine.
The data collected in running a machine, the cost of which is Rs 60,000 are given below: Year 1 2 3 4 5 Resale Value 42,000 30,000 20,400 14,400 9,650 Cost of spares 4,000 4,270 4,880 5,700 6,800 Cost of labour 14,000 16,000 18,000 21,000 25,000 Determine the optimum period for replacement of the machine.
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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The data collected in running a machine, the cost of which is Rs 60,000 are given below:
| Year | 1 | 2 | 3 | 4 | 5 |
|---|---|---|---|---|---|
| Resale Value | 42,000 | 30,000 | 20,400 | 14,400 | 9,650 |
| Cost of spares | 4,000 | 4,270 | 4,880 | 5,700 | 6,800 |
| Cost of labour | 14,000 | 16,000 | 18,000 | 21,000 | 25,000 |
Determine the optimum period for replacement of the machine.
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