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Q2: A company plans to update its equipment so that its trucks are replaced after ten years from now. The estimated cost required for so is ($ 750,000). According to the following pay plan: 1. (65%) of contract is paid now. 2. Remaining (35%) will pay at the end of contract. If, the company decided to deposits an annually uniform series during those ten years to provide the amount directly according the plan above. What is the amount should the company paid annually? If the interest rate is (10%)?

Q2: A company plans to update its equipment so that its trucks are replaced after ten years from now. The estimated cost required for so is ($ 750,000). According to the following pay plan: 1. (65%) of contract is paid now. 2. Remaining (35%) will pay at the end of contract. If, the company decided to deposits an annually uniform series during those ten years to provide the amount directly according the plan above. What is the amount should the company paid annually? If the interest rate is (10%)?

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Q2: A company plans to update its equipment so that its trucks are replaced after ten years from now. The estimated cost required for so is ($ 750,000). According to the following pay plan: 1. (65%) of contract is paid now. 2. Remaining (35%) will pay at the end of contract. If, the company decided to deposits an annually uniform series during those ten years to provide the amount directly according the plan above. What is the amount should the company paid annually? If the interest rate is (10%)?
Transcribed Image Text:Q2: A company plans to update its equipment so that its trucks are replaced after ten years from now. The estimated cost required for so is ($ 750,000). According to the following pay plan: 1. (65%) of contract is paid now. 2. Remaining (35%) will pay at the end of contract. If, the company decided to deposits an annually uniform series during those ten years to provide the amount directly according the plan above. What is the amount should the company paid annually? If the interest rate is (10%)?
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