Problem
A machine costs 525,000 today and has an estimated scrap value of $3000. Inflation averages 4% per year. The effective annual interest rate is 7%. How much money needs to be set aside each year to replace the machine with a similar model in 8 years?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.