How much money needs to be set aside each year to replace

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A machine costs $20,000 today and has an estimated scrap cash value of $2000 after 8 years. Inflation is 8% per year.

The effective annual interest rate earned on money invested is 8%. How much money needs to be set aside each year to replace the machine with an identical model eight years from today?

Reference no: EM131972271

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