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A machine costs 60,000 and its effetive ...

A machine costs 60,000 and its effetive life is estimated to be 25 years. A sinking find is to be created for replacing the machine at the end of its life time when its scrap value is estimated as 5000. The price of the new machine is estimated to be 100% more than the price be set aside aht the end of each year, out of the profit, for the sinking fund if its accumulates at an interest of 6% per annum compounded anually.

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