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Hiya,
Please can ANYONE help me with the below question. I have no idea how to answer the below, and the study guide just shows the answer and no workings 🙁
Brackenwood Plc is a tree felling company that needs to replace a major item of capital equipment in 3 years time. The estimated replacement cost will be $500,000. Funds for the replacement are to be provided by setting aside 4 equal annual sums and investing them at 10% pa. The first amount will be invested immediately, the last in 3 years time.
What is the annual amount that Brackenwood should set aside?
The correct answer is – $107,686.
Please can someone help!
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