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A mining project requires the purchase of new drillingequipment at a cost of $73250.A further $27000 will bespent on transport, installation and initial maintenance of

A mining project requires the purchase of new drillingequipment at a cost of $73250.A further $27000 will bespent on transport, installation and initial maintenance of the equipment, at the very beginning of the project.Of this amount, 20% constitutes maintenance costs and will be written off in Year 1, and the remainder will be capitalised.

What is the value of the equipment for depreciation purposes?

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