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A seafood company was investing in a new flounder processing plant and paid for it all at once. The company intends to use it mainly
A seafood company was investing in a new flounder processing plant and paid for it all at once. The company intends to use it mainly haddock and cod. The Company's management decided to make a fund for the flounder's future aging and upgrading costs. The flounder has a value of 35 million krona and its value will decrease by about 1% per month (in a simple rate of depreciation) The seafood company has started the monthly savings (ordinary annuity, end-of-period payments. The flounder upgrade needs to happen because the value of the old flounder has decreased to 3.500.000 krona Furthermore, the company benefits 6% interest from the savings account (annual nominal rate) which is calculated every month. How much does the company need to invest per month if it needs an upgrade of the flounder processing when the older one becomes obsolete
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