A machine just purchased for P1.2 million. It is anticipated that the machine will be held 5 years, that will have a salvage value P80,000 based on current prices, and the annual rate of inflation during the next 5 years will be 7%. The machine will be replaced by a duplicate and the firm will accumulate the necessary capital by making equal year-end deposits in a reverse fund that earns 6% per annum. Determine the amount of the annual deposit.

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Q: None

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