Suppose a Corporation Pays $50,000 for a Machine That Has

question 13

Short Answer

Suppose a corporation pays $50,000 for a machine that has a useful life of eight years and a salvage value of $5000.A sinking fund is established to replace the machine at the end of 8 years.The replacement machine will cost $70,000.If equal payments are made into the fund at the end of every 6 months and the fund earns interest at the rate of 10% compounded semiannually,what should each payment be?

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Definitions:

Delete Button

A user interface element that allows users to remove data, files, or entries.

Cells Group

A range of adjacent cells within a spreadsheet software that can be formatted, manipulated, or analyzed as a unit.

Delete Sheet

The action of removing an entire worksheet or sheet from a spreadsheet or workbook application.

Nonadjacent Cells

Cells in a spreadsheet that are not next to each other but are selected or operated on together.