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Question 2 : Deprival value an 1 ) anvary 2 0 X 1 a company bought plant costing $ 5 0 0 0 0 .
Question : Deprival value
an anvary X a company bought plant costing $ Its useful life was estimated to be ten years addithed no residual value.
At December X it was estimated that the plant could be sold for $ but it would have to be dismantled, which would cost approximately $
If the company continues to use the machine, management estimates that it will generate net cash inflows with a present discounted value of $
New plant of the same type would cost $ at December X
Calculate the deprival value of the asset. Explain why this amount is its value to the business.
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