Candy Limited Expected Future Cash Flows from the Use of Equipment

question 18

Multiple Choice

Candy Limited expected future cash flows from the use of equipment as follows: End of Year 1 $4000; End of Year 2 $5000; End of Year 3 $2000. The discount rate was determined as 5%. The value in use of the equipment is:

• A) $10 073.
• B) $10 576.
• C) $11 000.
• D) $11 550.

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The quality of being exact, accurate, and carefully defined.

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The measure of the likelihood that an event will occur.

Probability

A numerical expression between 0 and 1 indicating the probability of an event happening.

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The result or effect of an action, situation, or decision.