Biy invested in a machine costing Php. 15, 000.00 has an economic life of 8 years after which it will be sold for Php. 3, 000.00. What minimum cash return would the Mr. Willie demand annually from the operation of this machine if he desires interest annually at the rate of 8 % on his investment and accumulates a capital replacement fund by investing annual deposits at 5 %?

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Investment Php 15 00000 Interest rate 8 Capital replacement fund rate 5 Therefore the mi... View the full answer