- 10 Marks
QTB – May 2017 – L1 – SB – Q1a – Mathematics
Machine replacement time and net earnings calculation considering repair costs.
Question
a. A manufacturing company has purchased a machine generating earnings (₦’000) at time t of 
, where t is in years. The repair and maintenance cost at time t is 
You are required to:
i. Determine when the machine should be replaced, assuming it has a zero salvage value. (4 Marks)
ii. Determine the total net earnings, including the cost of repairs and maintenance within the period of 11 years. (6 Marks)
Find Related Questions by Tags, levels, etc.
- Tags: Depreciation, Machine Replacement, Net Earnings
- Level: Level 1
- Topic: Mathematics
- Series: MAY 2017
Report an error