You plan to save for this purchase using sinking fund

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Reference no: EM132063914

After careful review of your maintenance log, you also realized that you will need to replace a fence post molding machine that sells for $18,000.00. You estimate that you will need to purchase a new machine in 3 years’ time as this machine reaches the end of its useful life. You plan to save for this purchase using a sinking fund that compounds quarterly, and earns a 4.5% annual rate.

Reference no: EM132063914

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