A company expects to retire an existing machine at the end of 2024 and will replace it with a new machine for the same task at an estimated cost of P60,035. The old machine is expected to be sold for P5,000 when it is replaced. To provide for the replacement, the company intends to deposit the following amounts in an account earning interest at 8% compounded quarterly: - P20,000 at the end of 2021 - P15,000 at the end of 2022 - P10,000 at the end of 2023 What additional amount is needed at the end of 2024 to purchase the new machine? Draw the Cash flow diagram.

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Q: True False

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