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P Limited acquires the net assets of Hardman Limited for a cash consideration of $80 000. One half is to be paid on acquisition date
P Limited acquires the net assets of Hardman Limited for a cash consideration of $80 000. One half is to be paid on acquisition date and the other half is payable in one years time. The appropriate discount rate is 8% p.a. The present value of the cash outflow in one years time is:
$40 000.
$36 364.
$37 037.
$43 201.
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