Purchased new manufacturing system-future operating costs

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Samson Industries purchased a new manufacturing system that has an estimated useful life of 17 years. The company anticipates annual operating costs will be $1483 and will increase by a uniform percentage of 4% per year. How much should the company deposit today, in an account paying 12% per year compounded annually, in order to pay for the future operating costs?

Reference no: EM13888609

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