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GAS METER PROBLEM

A gas meter costs 120 USD to replace (a new gas meter costs $50 and its installation
costs $70). The company does the replacement surveys every 5 years.

For the first 10 years the meter works fine and measures gas consumption very
accurately. On average, from year 10 to 15 it underestimates gas consumption by $2 per
year which would be 10 dollars over the 5 year period.

Over the period 15-20 years of age a gas meter underestimate gas consumption by $4 per
year. In the period of 20-25 years of age it underestimates gas consumption by $6 per
year and after 25 till age 30 it underestimates gas consumptions by $8 per year. What is
the best time to replace a gas meter?

(Note that a gas meter replacement age can be a multiple of 5 years which means it can
be replaced at ages 5, 10, 15, 20, 25, and 30 only).

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