1. Sick Oil Company is considering the purchase of a new machine that will last 5 years and cost Php50,000, maintenance will cost Php6,000 the first year, decreasing by Php1,000 each year to- Php2,000 the fifth year. If the interest rate is 8% per year compounded annually, how much money should the company set aside for the machine? Php 66,583.83 Php 73,583.83 Php 62,591.12 Php 68,591.12 а. с. b. d.

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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Sick Oil Company is considering the purchase
of a new machine that will last 5 years and cost
Php50,000, maintenance will cost Php6,000 the
first year, decreasing by Php1,000 each year to
Php2,000 the fifth year. If the interest rate is 8%
1.
per year compounded annually, how much
money should the company set aside for the
machine?
Php 66,583.83
Php 73,583.83
Php 62,591.12
Php 68,591.12
а.
с.
b.
d.
Transcribed Image Text:Sick Oil Company is considering the purchase of a new machine that will last 5 years and cost Php50,000, maintenance will cost Php6,000 the first year, decreasing by Php1,000 each year to Php2,000 the fifth year. If the interest rate is 8% 1. per year compounded annually, how much money should the company set aside for the machine? Php 66,583.83 Php 73,583.83 Php 62,591.12 Php 68,591.12 а. с. b. d.
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