In the VanBuren machine replacement problem, we assumed that the maintenance cost and salvage values are linear functions of age. Suppose instead that the maintenance cost increases by 50% each...

In the VanBuren machine replacement problem, we assumed that the maintenance cost and salvage values are linear functions of age. Suppose instead that the maintenance cost increases by 50% each quarter and that the salvage value decreases by 10% each quarter. Rework the model with these assumptions. What is the optimal replacement schedule?