Ying Limited Acquires the Net Assets of Yang Limited for a Cash

question 5

Multiple Choice

Ying Limited acquires the net assets of Yang Limited for a cash consideration of $50 000. One half is to be paid on acquisition date and one half is payable in one year's time. The appropriate discount rate is 5% p.a. The present value of the cash outflow in one year's time is:

• A) $23 810.
• B) $25 000.
• C) $26 190.
• D) $30 000.

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