Pharoah Company must perform an impairment test on its equipment. The equipment will produce the following Cash
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Question:
Pharoah Company must perform an impairment test on its equipment. The equipment will produce the following Cash flows
Year 1: 36,000
Year 2: 48,000
Year 3: 65,000
Discount rate = 10%
What is the value in use for this equipment? What is the Present Value?
Expert Answer:
Answer rating: 100% (QA)
To calculate the value in use for the equipment we can use the formula ... View the full answer
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