How much money would have to be placed in a sinking fund each year to replace a machine costing $20,000 today at the end of 10 years if the fund yields 9% annual interest rate compounded yearly and if the cost of the machine is assumed to increase at 5% annually for the next 10 years? Assume the salvage value is zero.   Group of answer choices $2,143.63 $2150 $2,340 $1923

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Q: 7.

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Q: None

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Production Budget

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.