2. A manufacturing firm contemplates retiring an existing machine at the end of 2002. The new machine to replace the existing one will have an estimated cost of P400,000. This expense will be partially defrayed by sale of the old machine as scrap for P30,000. To accumulate the balance of the required capital, the firm will deposit the following sum in an account earning an interest of 5% compounded quarterly: P60,000 at the end of 1999 P60,000 at the end of 2000 P80,000 at the end of 2001 What cash disbursement will be necessary at the end of 2002 to purchase the new machine?

2. A manufacturing firm contemplates retiring an existing machine at the end of 2002. The new machine to replace the existing one will have an estimated cost of P400,000. This expense will be partially defrayed by sale of the old machine as scrap for P30,000. To accumulate the balance of the required capital, the firm will deposit the following sum in an account earning an interest of 5% compounded quarterly: P60,000 at the end of 1999 P60,000 at the end of 2000 P80,000 at the end of 2001 What cash disbursement will be necessary at the end of 2002 to purchase the new machine?

Structural Analysis

6th Edition

ISBN:9781337630931

Author:KASSIMALI, Aslam.

Publisher:KASSIMALI, Aslam.

Chapter2: Loads On Structures

Section: Chapter Questions

Problem 1P

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