Solution:-
The required amount that the company can spend is given by
120,000 = 56,000(P/F, 9%, 1) + A*((P/A, 9%, 5) - (P/A, 9%, 1))
120,000 = 56,000*0.9174 + A*(3.890-0.917)
120,000 = 51,374.4 + A * 2.973
A = (120,000 – 51,374.4) / 2.973
A = $68,625.6 / 2.973
A = $23,082.95 or $23,083
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