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A purchased a machinery by the hire purchase system for $. 30,000 to be paid as follows: $. Down payment 5,000 At the end

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A purchased a machinery by the hire purchase system for $. 30,000 to be paid as follows: $. Down payment 5,000 At the end of the First year 7,000 Second year 6,500 Third year 6,000 Fourth year 5,500 Interest is charged on the cash value at 10% per annum. At what value should the machine be capitalised?

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