SIMPLE INTEREST AND COMPOUND The future value of a cooling tower is $90,000 and the useful life of the tower is estimated to be 10 years. How much must be saved annually in an annuity at an interest rate of 6% to obtain funds enough to replace the tower at the end of 10 years? If the salvage value of the tower is $5,000, determine the value of the asset (that is, the total book value of the tower) at the end of 6 years based on straight-line depreci

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