Give me answer within 45 min please I will give you upvote immediately its very urgent ...thank you.. Balcombe Limited wishes to set up a sinking fund that will be sufficient to pay for a newasset in six years' time. The new asset will cost £200,000 in six years' time.3If the cost of capital is 12%, how much should the company set aside on an annual basis ifthey start making payments into the fund now and finish immediately before the asset isacquired?£19,824£22,005C. £24,645D £31,482Can you please explain and show working?

Sinking funds are periodic payments done so that they are equivalent to future requirements of money…

If the cost of capital is 12%, how much should the company set aside on an annual basis II they start making payments into the fund now and finish immediately before the asset is acquired? A £19,824 B £22,005 C. £24,645

If the cost of capital is 12%, how much should the company set aside on an annual basis II they start making payments into the fund now and finish immediately before the asset is acquired? A £19,824 B £22,005 C. £24,645

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter19: Capital Investment

Section: Chapter Questions

Problem 13E: Buena Vision Clinic is considering an investment that requires an outlay of 600,000 and promises a...

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Give me answer within 45 min please I will give you upvote immediately its very urgent ...thank you..

Balcombe Limited wishes to set up a sinking fund that will be sufficient to pay for a new
asset in six years' time. The new asset will cost £200,000 in six years' time.
3
If the cost of capital is 12%, how much should the company set aside on an annual basis if
they start making payments into the fund now and finish immediately before the asset is
acquired?
£19,824
£22,005
C. £24,645
D £31,482
Can you please explain and show working?

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