A pharma company uses spectrophotometers to analyze the concentration of products. One of the spectrophotometer need to be replaced which will cost the company $51667 five years from now. The pharma company has decided to keep a fixed amount of funds every year to cover the spectrophotometer charges. Calculate the amount the company needs to set aside each year beginning 1 year from now. Provided rate of return equal to 15% per year. Solve by using formulas (the use of tables is not allowed)
A pharma company uses spectrophotometers to analyze the concentration of products. One of the spectrophotometer need to be replaced which will cost the company $51667 five years from now. The pharma company has decided to keep a fixed amount of funds every year to cover the spectrophotometer charges. Calculate the amount the company needs to set aside each year beginning 1 year from now. Provided rate of return equal to 15% per year. Solve by using formulas (the use of tables is not allowed)
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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A pharma company uses spectrophotometers to analyze the concentration of products. One of the spectrophotometer need to be replaced which will cost the company $51667 five years from now. The pharma company has decided to keep a fixed amount of funds every year to cover the spectrophotometer charges. Calculate the amount the company needs to set aside each year beginning 1 year from now. Provided
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