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Question in Specimen (Presentation of Answer)

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FR Exams › Question in Specimen (Presentation of Answer)

  • This topic has 1 reply, 2 voices, and was last updated 2 years ago by P2-D2.
Viewing 2 posts - 1 through 2 (of 2 total)
  • Author
    Posts
  • June 5, 2022 at 8:57 pm #657477
    maximus07
    Participant
    • Topics: 446
    • Replies: 437
    • ☆☆☆☆

    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.

    June 7, 2022 at 8:55 pm #657777
    P2-D2
    Keymaster
    • Topics: 4
    • Replies: 7142
    • ☆☆☆☆☆

    The numbers are given in $000s and so I would look to follow the same in your answer.

    Thanks

  • Author
    Posts
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