Question No 1:

Resale value and maintenance of a product per year whose purchase price is 3000 is given
below. Determine the cumulative cost for each year.

Years 1 2 3 4 5 6 7
Maintenance
600 700 800 900 1000 1200 1500
cost
Resale value 2000 1333 1000 750 500 300 300

Question No 2:
Purchase price of a certain product is 7000. Maintenance cost and Resale values are given in the
table below. Determine the capital cost for each year.
Years. 1 2 3 4 5 6 7 8
Maintenance Cost. 900 1200 1600 2100 2800 3700 4700 5900
Resale Value 4000 2000 1200 600 500 400 400 400

Question No 3:
Resale value and maintenance of a product per year whose purchase price is 3000 is given
below.

Years 1 2 3 4 5 6 7
Maintenance
600 700 800 900 1000 1200 1500
cost
Resale value 2000 1333 1000 750 500 300 300

Determine the total and average cost for each year. Also find the most economical replacement
age of the truck.