A company expects net cash flows of 30000 from a machine for the next three years. The cost of capital is 8%.
I calculated the value in use from the table to be 77310 but from the formula to be 77312.9. So there is some difference. Which way should I use. In the exam where the answer is to be inserted then this difference may mean that the answer gets incorrect. So what should be done
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cost of capital
Use the figures from the table as this will give the answer used by the exam answers.
Thanks
Is this table provided in the exam
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