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Please show how you got the answer In 10 years, a $40000 machine will have a salvage value of $4000. A new machine at that
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In 10 years, a $40000 machine will have a salvage value of $4000. A new machine at that time is expected to sell for $52000. In order to provide funds for the difference between the replacement cost and the salvage value, a sinking fund is set up into which equal payments are placed at the end of each year. If the fund earns 7% compounded annually, how much should each payment beStep by Step Solution
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