A machine costs Rs.520000 with an estimated life of 25 years. A sinking fund is created to replace it by a new model at 25% higher cost after 25 years with a scrap value realization of Rs.25000. What amount should be set aside every year if the sinking fund investments accumulate at 3.5% compound interest p.a ?
A. 16000
B. 16500
C. 16050
D. 16005

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