Question
Marry Ltd has just acquired an asset at a cost of R1500. The asset is expected to generate a cash flow of R150, R 0,
Marry Ltd has just acquired an asset at a cost of R1500. The asset is expected to generate a cash flow of R150, R 0, R180, and R300 at the end of years 1, 2, 3, and 4 respectively. The opportunity cost of investing in the assets is 12% and risk premium of 2 % is involved. The value of the asset is equal to? Show formula.
a. R452.91
b. R430.70
c. R428.10
d. R630.00
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Using Financial Accounting Information The Alternative to Debits and Credits
Authors: Gary A. Porter, Curtis L. Norton
7th Edition
978-0-538-4527, 0-538-45274-9, 978-1133161646
