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2. A machine, initially costing Php 1.39 M, is set to depreciate Php 170,000 every year using sinking fund method. How much must be invested every year to replace the asset with a better but more expensive machine costing Php 243,000 after 6 years at an annual rate of 6%?

2. A machine, initially costing Php 1.39 M, is set to depreciate Php 170,000 every year using sinking fund method. How much must be invested every year to replace the asset with a better but more expensive machine costing Php 243,000 after 6 years at an annual rate of 6%?

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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2. A machine, initially costing Php 1.39 M, is set to depreciate Php 170,000 every year using sinking fund method. How much must be invested every year to replace the asset with a better but more expensive machine costing Php 243,000 after 6 years at an annual rate of 6%?
Transcribed Image Text:2. A machine, initially costing Php 1.39 M, is set to depreciate Php 170,000 every year using sinking fund method. How much must be invested every year to replace the asset with a better but more expensive machine costing Php 243,000 after 6 years at an annual rate of 6%?
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