# I have just purchased (at time 0) a new car for \$12,000. The cost of maintaining a car during a year

I have just purchased (at time 0) a new car for \$12,000. The cost of maintaining a car during a year depends on its age at the beginning of the year, as given in Table 1. To avoid the high maintenance costs associated with an older car, I may trade in my car and purchase a new car. The price I receive on a trade-in depends on the age of the car at the time of trade-in (see Table 2). To simplify the computations, we assume that at any time, it costs \$12,000 to purchase a new car. My goal is to minimize the net cost (purchasing costs + maintenance costs – money received in trade-ins) incurred
I have just purchased (at time 0) a new car for \$12,000. The cost of maintaining a car during a year depends on its age at the beginning of the year, as given in Table 1. To avoid the high maintenance costs associated with an older car, I may trade in my car and purchase a new car. The price I receive on a trade-in depends on the age of the car at the time of trade-in (see Table 2). To simplify the computations, we assume that at any time, it costs \$12,000 to purchase a new car. My goal is to minimize the net cost (purchasing costs + maintenance costs – money received in trade-ins) incurred during the next five years. Formulate this problem as a shortest-path problem.

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