The price of a machine is 3,000. Its maintenance cost and resale value
at different ages are given below :-
Year
1
2
3
4
5
6
Maintenance cost (*) 1000 1100 1150 1300 1500 1900
Resale value (*)
1750 1250 850
600 500 450
What is the annual average cost? When the machine be replaced?