Cma-gr iv-mgt accounting-problem

TONYJA (free lance) (136 Points)

20 April 2015  

dear friend,

can anyone pls solve the problem from subject Management accounting in Group IV(paper 15)

                   
A machine owner finds from his past experience that cost per year of maintenance of a machine whose                 
purchase price is Rs.6,000/- are as given below:                   
Year 1 2 3 4 5 6 7 8  
Maintenance Cost (Rs.): 1000 1,200 1,400 1,800 2,300 2,800 3,400 4,000  
Resale price (Rs.) 3000 1,500 750 375 200 200 200 200  
                   
At what age is replacement due?