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What additional amount of money is needed

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Question - A company expect to retire an existing machine at the end of 1995 and will replaced it with a new machine for the same task at an estimated cost of P 60,000. The old machine is expected to be sold for P 5000 when it is replaced. To provide for replacement, the company intends to deposit the following amounts in an account earning interest at 8% compounded quarterly, P 20,000 at the end of 1992, P 15,000 at the end of 1993, P 10,000 at the end of 1994. What additional amount of money is needed at the end of 1995 to purchase the new machine?

Reference no: EM133112669

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