A company needs 60,000 in five years to buy a new equipment. In order to accumulate this, sum a sinking fund consisting of three annual payments is established now. For tax purposes, no further payments will be made after three years. What payments are necessary if money is worth 18% per annum?

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A: Excel Workings are provided in the solution in the form of Excel snip. One can use the formula…

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A:

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