At the beginning of year 1, a new machine must be purchased at the cost of 130K TL. The cost of maintaining a machine i years old is given in the table below. Due to the inflation, the purchase cost of a new machine at the beginning of Year 2, Year 3, and Year 4 would be 140K, 150K, and 165K respectively. The trade-in value is fixed at 50K for a replaced machine regardless of the age. Your goal is to minimize the total cost (purchasing plus maintenance) of having the machine for four years. Determine the year(s) in which a new machine should be purchased and calculate the total cost.
At the beginning of year 1, a new machine must be purchased at the cost of 130K TL. The cost of maintaining a machine i years old is given in the table below. Due to the inflation, the purchase cost of a new machine at the beginning of Year 2, Year 3, and Year 4 would be 140K, 150K, and 165K respectively. The trade-in value is fixed at 50K for a replaced machine regardless of the age. Your goal is to minimize the total cost (purchasing plus maintenance) of having the machine for four years. Determine the year(s) in which a new machine should be purchased and calculate the total cost.
Algebra for College Students
10th Edition
ISBN:9781285195780
Author:Jerome E. Kaufmann, Karen L. Schwitters
Publisher:Jerome E. Kaufmann, Karen L. Schwitters
Chapter8: Functions
Section8.7: Direct And Inverse Variation
Problem 36PS
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