Dave T.

asked • 09/29/20

economics problem help thanksss

The following schedule of funds is available to form a sinking fund. Current year

(n). $50,000

n+ 1 $40,000

n+2. $30,000

n+3 $20,000

At the end of the fourth year, equipment costing $250,000. 00 will have to be purchased as a replacement for old equipment. Money is valued at 20% by the company. At the time of purchase, how much money will be needed to supplement the sinking fund?

a) $12,000 b) $11,000 c) $10,000 d) $9,000

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