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
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.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F055951fe-f448-429b-b96f-e5dd6628e0d2%2F0ad4d85b-f8fc-45e6-a66c-65ebc386e825%2Fe3wvbcg_processed.png&w=3840&q=75)
Transcribed Image Text: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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