A piece of industrial machinery costs 48000 to replace and, Management Theories

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A piece of industrial machinery costs 48000 to replace and

Question: A piece of industrial machinery costs $48,000 to replace and has essentially no salvage value. Over the first five years of operation, maintenance costs amounted to $8,000. If the maintenance cost rate is a linear function of time, what is the optimal age at which to replace the machinery?

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Management Theories: A piece of industrial machinery costs 48000 to replace and

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