Suppose a machine will yield a net of $200 per month for 5 years,after which the machine would be worthless.How much should the firm pay for the machine if it wants to earn 5% annually on its investment and also set up a sinking fund to replace the purchase price? For the fund,assume monthly payments and a rate of 4% annually.

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The Answer of Suppose a machine will yield a net of $200 per month for 5 years,after which the machine would be worthless.How much should the firm pay for the machine if it wants to earn 5% annually on its investment and also set up a sinking fund to replace the purchase price? For the fund,assume monthly payments and a rate of 4% annually.

Suppose a Machine Will Yield a Net of $200 Per