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Ho Question 6 Your company needs to replace a machine. The machine costs 100,000 and will have required annual service which costs 5,000 at the
Ho Question 6 Your company needs to replace a machine. The machine costs 100,000 and will have required annual service which costs 5,000 at the end of each year for 10 years. You are paying with year-end annual payments of 15,000 for as long as necessary and a final drop payment payable one year after the final full payment. This series of payments covers the full purchase of the machine including required service. Given an interest rate of 5%, determine the number of full payments and the amount of the payment. Number of full payments: Amount of drop payment: drop
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