A piece of machinery costs ($ 20,000) and has an estimated life of 8 years and a

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A piece of machinery costs $\$ 20,000$ and has an estimated life of 8 years and a scrap value of $\$ 2,000$. What uniform annual amount must be set aside at the end of each of the 8 years for replacement if the interest rate is 4 percent/year?

a. $\$ 1,953$

b. $\$ 2,174$

c. $\$ 2,250$

d. $\$ 2,492$

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