OLEKU Ltd has just purchase a machine at a cost of 7.5m, the effective life of the machine is estimated to 5yr.

A sinking is to be created for repalcing the machine by new model at the end of his life span.Machine price is assume to increase inline with inflation rate, the annual inflation rate assumed to 14%.Find the amount that should be set aside every yr at of profit for sinking funds.If it accummulate at 25% interest rate per annual.



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