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

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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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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