Question
A machine costs $20,000 today and has an estimated scrap cash value of $2000 after eight years. The effective annual interest rate earned on money
A machine costs $20,000 today and has an estimated scrap cash value of $2000 after eight years. The effective annual interest rate earned on money invested is 8%. How much needs to be set aside at the end of each year to replace the machine with an identical model eight years from now assuming the machine cost does not change?
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Business Analysis And Valuation Using Financial Statements Text And Cases
Authors: Krishna G. Palepu, Paul M. Healy, Victor Lewis Bernard, W.Gordon Filby
2nd Edition
0324015658, 9780324015652
