A steel mill estimates that one of its furnaces will require maintenance 20,000 at the end of 2 years, 40,000 at the end of 4 years, and 80,000 at the end of 8 years. What uniform semi-annual amounts could it set aside over the next eight years at the end of each period to meet these requirements of maintenance cost if all the funds would earn interest at the rate of 6% compounded semi-annually

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You need to translate your cash flow to semiannual periods end of year 2 is end of semiannual period ... View the full answer