On 31/12/23 XYZ Corp is involved in a LEGAL CASE Involving air pollution. In the event that XYZ corp is found to be liable, damages have to be paid. At the moment, XYZ Corp does not recognize a provision for this amount. However, an analyst believes that it is likely that XYZ Corp will lose the court case and has to pay damages on 31/12/26. The discount rate is 10%. In the adjustments to the 2024 financial statements, accordingly, the analyst recognizes an interest expense of 751.31.

Based on the information above, what are the damages that the analyst expects XYZ Corp to pay on 31/12/26.

Answer rating: 100% (QA)

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