5. A company is trying to consider buying an equipment with an initial cost of $80,000. The salvage value is expected to be $20,000 after 20 years. A fund is set up to replace it at the end of 20 years. What is the uniform annual deposit that should be made to the fund? Money is worth 10% per annum

5. A company is trying to consider buying an equipment with an initial cost of $80,000. The salvage value is expected to be $20,000 after 20 years. A fund is set up to replace it at the end of 20 years. What is the uniform annual deposit that should be made to the fund? Money is worth 10% per annum

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 2PA: Jasmine Manufacturing is considering a project that will require an initial investment of $52,000...

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Question

5. A company is trying to consider buying an equipment with an initial cost of $80,000. The
salvage value is expected to be $20,000 after 20 years. A fund is set up to replace it at
the end of 20 years. What is the uniform annual deposit that should be made to the fund?
Money is worth 10% per annum.

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