Answer:
16.) In anticipation of a much bigger volume of business after 10 years, a fabrication company purchased onadjacent lot for its expansion program where it hopes to put up a building projected to costP4,000,000.00 Then it will be constructed 10 years after. To provide for the required capital expenses, itplans to put up a sinking fund for the purpose. How must the company deposit each year if interested tobe earned is computed at 15%?a.) 198,009.30b.) 197,007.45c.) 197,008.25d.) 199,008.23Answer: c.) 197,008.45Solution:(1.15)[¿¿10−1]=197008.25A=400(0.15)¿
