Compare required income all time by estimation of five years

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Reference no: EM131850308

Five years ago, Diamond Electric one division of De Beers paid $ 3.15 million for diamond cutting tools. At that time, the company estimated an additional income of $ 500,000 to cover investments at 10% per annum. If there is an estimated service for more than 8 years with a residual value of $ 300,000, compare the required income all the time by the estimation of 5 years ago.

Reference no: EM131850308

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