Assumed to increase at annual compound rate

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How much money would have to be placed in a sinking fund each year to replace machine B at the end of 25 years if the fund yields 10% annual compound interest and if the first cost of the machine is assumed to increase at a 6% annual compound rate? (Assume the salvage value does not change.) (A) $2030 (B) $2510 (C) $2540 (D) $4110

Reference no: EM131195245

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