Suppose a Machine Will Yield a Net of $200 Per

question 167

Short Answer

Suppose a machine will yield a net of $200 per month for 5 years,after which the machine would be worthless.How much should the firm pay for the machine if it wants to earn 5% annually on its investment and also set up a sinking fund to replace the purchase price? For the fund,assume monthly payments and a rate of 4% annually.

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Definitions:

Variables

Elements, characteristics, or conditions that can change or vary within a research study.

Researchers

People who undertake organized research to discover facts or establish principles, or to gather data on a topic.

Modality

The particular mode in which something exists or is experienced or expressed.

Variability

The extent to which data points in a statistical distribution or data set diverge from the average or mean.