When Assessing the Value in Use of Equipment the Following

question 29

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.

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Definitions:

Cohesion

The force that holds together molecules of the same substance, for example, the attraction between water molecules.

Sweat

A liquid produced by the body’s sweat glands, primarily composed of water, salts, and proteins, it functions to cool the body through evaporation.

Atoms

The basic units of matter, consisting of a nucleus surrounded by electrons.

Molecules

Molecules are groups of two or more atoms held together by chemical bonds, forming the smallest identifiable unit into which a pure substance can be divided while retaining its composition and chemical properties.