Determine the value of equipment at the current date, Managerial Accounting

A company is preparing a value in use calculation for a factory building and the equipment used to make a particular product. It has prepared cash flows for the next five years from the year-end date (at current prices) as follows:

1469_Determine the value of equipment at the current date.png

The pre-tax discount rate (adjusted to exclude the effects of inflation) is 10%. Cash flows are assumed to occur on the last day of each year.

Posted Date: 3/15/2013 2:58:32 AM | Location : United States







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