Question

(b) The truck-owner finds from his past experience that the maintenance costs are Rs. 200 for the first year and then increase by Rs. 2000 every year. The cost of truck type A is Rs. 9000. Determine the best age at which to replace the truck. If the optimum replacement is followed what will be the average yearly cost of owning and operating the truck? Truck of type B costs Rs. 20000. Annual operating costs are Rs. 400 for the first year and then increase by Rs. 800 every year. The truck owner has now the truck type A which is one year old. Should it be replaced by B type truck, and if so when?

Answer 1

Proble m Sol or Tuck tyþe A Cost Priu 9о00 Year Maintnanu cast Сumulative Maintenanu Avenage cat Total cos 9200 2400 2200 oLS 3 6600 5600 4200 5200 1280p 6200 shs 30 Ooo 8200 21000 Maintenane cast (200) th end o 3'd At уeaл cast (520) qtat than Thu avtnage best age j truck tybe A js 3yeans thu ) optimam yearlyct Avenage dor Truck tyhe B Cast Pru Avengge Cast u mulative Maiatenance Total Cost Mainkenen gean Cyt 20400 20400 Jo,&oo 21 600 200 2 3600 36aro L19.998L o099 6000 3 26400 6400 2800 360 o 3oooo 5733.3 4400 5657.1 39600 19600 5200 45600 2560o OOLS

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