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.
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Question in Specimen (Presentation of Answer)
The numbers are given in $000s and so I would look to follow the same in your answer.
Thanks
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