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When Assessing the Value in Use of Equipment the Following

Question 10

Multiple Choice

When assessing the value in use of equipment the following estimates of cash flows and risk rates were made.In one year: $1000 at 4%; in 2 years $1000 at 4.5%,and in 3 years $1000 at 5%.The expected present value of the asset is:


A) $3000.
B) $2886.
C) $2591.
D) $2742.

Correct Answer:

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