manufacturing firm contemplates retiring an existing machine at the end of 1982. The new machine to replace the existing one will have an estimated cost of P 10,000. This expense will be partially defrayed by sale of old machine as a scrap for P 750. To accumulate the balance of the required capital, the firm will deposit the following sums in an account earning interest at 5% compounded annually. P1500 at the end of 1979; P2000 at the end of 1981. What cash disbursement will be necessary at the end of 1982 to purchase the new machine?
manufacturing firm contemplates retiring an existing machine at the end of 1982. The new machine to replace the existing one will have an estimated cost of P 10,000. This expense will be partially defrayed by sale of old machine as a scrap for P 750. To accumulate the balance of the required capital, the firm will deposit the following sums in an account earning interest at 5% compounded annually. P1500 at the end of 1979; P2000 at the end of 1981. What cash disbursement will be necessary at the end of 1982 to purchase the new machine?
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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3. A manufacturing firm contemplates retiring an existing machine at the end of 1982. The new machine to replace the existing one will have an estimated cost of P 10,000. This expense will be partially defrayed by sale of old machine as a scrap for P 750. To accumulate the balance of the required capital, the firm will deposit the following sums in an account earning interest at 5% compounded annually. P1500 at the end of 1979; P2000 at the end of 1981. What cash disbursement will be necessary at the end of 1982 to purchase the new machine?
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