A copier costs $4,500 and has an estimated life of 4 years. A deluxe version of the copier is supposed to last 6 years. If money is worth 3.5%, how much is the deluxe version worth? ($6,528.17) Cannot use Excel

A copier costs $4,500 and has an estimated life of 4 years. A deluxe version of the copier is supposed to last 6 years. If money is worth 3.5%, how much is the deluxe version worth? ($6,528.17) Cannot use Excel

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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Expert Solution

Step 1

Formula:

Actual price = [ Copier cost / ( 100 - 3.5 % ) ] x 100

To know the actual cost copier cost to be divided with 100 - money worth percent.

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