Please provide COMPLETE and CLEAR SOLUTION.7. A company expects to retire an existing machine at the end of 2024 and will replace it with a new machinefor the same task at an estimated cost of P60.001. The old machine is expected to be sold for P5,000 whenit is replaced. To provide for the replacement, the company intends to deposit the following anmounts in anaccount earning interest at 8% compounded quarterly:P20,000 at the end of 2021P15,000 at the end of 2022P10,000 at the end of 2023What additional amount is needed at the end of 2024 to purchase the new machine? Draw the CFD.

Amount invested in 2021 = P20000 Amount invested in 2022 = P15000 Amount invested in 2023 = P10000…

Answered: 7. A company expects to retire an…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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John is a very cost-conscious investor. His rule of thumb is that it costs $200 per year, starting in the first year of vehicle life to maintain an automobile. This expense increases by $200 each year over the life of the car. John is now considering the purchase of a four-year old car with 40,000 miles on it for $7,000. How much money will John have to set aside now to pay for maintenance (as a lump sum) if he keeps this car for eight years? John's interest rate is 4% per year. Click the icon to view the interest and annuity table for discrete compounding when i= 4% per year. John will have to set aside $ to pay for maintenance. (Round to the nearest dollar.)
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