A machine is procured at a price of Rs. 47000 with a 2-year warranty. After two years, the annual maintenance cost (AMC) in Rs. Is given by the following formula:AMC = (i -2) × 2000, for i >2where i is the number of years elapsed since the machine was purchased. Neglect the scrap value of the machine, inflation, interest, etc. For minimizing the average cost, the machine should be replaced at the end of the year.

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1.	A machine is procured at a price of Rs. 47000 with a 2-year warranty. After two years, the annual maintenance cost (AMC) in Rs. Is given by the following formula:AMC = (i -2) × 2000, for i >2where i is the number of years elapsed since the machine was purchased. Neglect the scrap value of the machine, inflation, interest, etc. For minimizing the average cost, the machine should be replaced at the end of the year.
A.	2
B.	4
C.	7
D.	10
Answer» D. 10

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