ECONOMICS-17 The following schedule of funds is available to form a sinking fund. t= 0 yr $5000
t= 1 yr $4000
t= 2 yr $3000
t= 3 yr. $2000 At the end of the fourth year, equipment costing $25,000 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? (A) $820 (B) $1000 (C) $2000 (D) $8200
