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?

Question

Quizplus · Accepted Answer

The Answer of 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?

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