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How much money needs to be set aside today

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Reference no: EM131561756

How much money needs to be set aside today to purchase a new equipment in 3 years? The money is expected to earn 5% interest compounded annually, the expected increase in the price of equipment is 2% per year and the marginal tax rate is 35%.

It is also given that the present cost of equipment is $ 100,000 and it is to be replaced with new one in 3 years

Reference no: EM131561756

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