Nguyen Limited estimated that it would receive future cash flows from the use of equipment as follows:
End of Year 1 $10 000
End of Year 2 $50 000
End of Year 3 $20 000
The discount rate was determined as 8%. The 'value in use' of the equipment is:
A) $80 000.
B) $73 600.
C) $68 000.
D) $63 500.

Question

Quizplus · Accepted Answer

The Answer of Nguyen Limited estimated that it would receive future cash flows from the use of equipment as follows:
End of Year 1 $10 000
End of Year 2 $50 000
End of Year 3 $20 000
The discount rate was determined as 8%. The 'value in use' of the equipment is:
A) $80 000.
B) $73 600.
C) $68 000.
D) $63 500.

Nguyen Limited Estimated That It Would Receive Future Cash Flows