Lacey Limited Expected Future Cash Flows from the Use of Plant

question 18

Multiple Choice

Lacey Limited expected future cash flows from the use of plant as follows: End of Year 1 $14 000; End of Year 2 $15 000; End of Year 3 $12 000. The discount rate was determined as 9%. The value in use of the plant is:

• A) $41 000
• B) $34 735
• C) $37 862
• D) $Nil.