On 30 September 20X3, Telepath Co was informed by a major customer that it would no longer be placing orders with Telepath Co. As a result, Telepath Co revised its estimates that net cash inflows earned from the plant for the next three years will be
Year ended 30 September: $’000 20X4 220
20X5 180
20X6 200
Telepath Co’s cost of capital is 10% which results in the following discount factors
Value of $1 at 30 September: $ 20X4 0.91
20X5 0.83
20X6 0.75 Calculate the value in use of Telepath Co’s plant at 30 September 20X3.
I am confused that answer I will have to write will be 499.6 or 499600 as it has given no instructions.