A company wants to accumulate $100,000 to purchase replacement machinery 8 years from now.To accomplish this, equal semiannual payments are made to a fund that earns 7% compounded quarterly. Find the amount of each payment.

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
Problem 15EA: Project A costs $5,000 and will generate annual after-tax net cash inflows of $1,800 for five years....
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A company wants to accumulate $100,000 to purchase replacement machinery 8 years from now.To accomplish this, equal semiannual payments are made to a fund that earns 7% compounded quarterly. Find the amount of each payment.

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