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Question 31) Amazing Company acquires a trade name from Fantastic Ltd. Amazing estimates it will receive $7,200 per year from the name over the next
Question
31)
Amazing Company acquires a trade name from Fantastic Ltd. Amazing estimates it will receive
$7,200 per year from the name over the next 9 years. The first payment would be received at the
end of the first year. Using a discount rate of 4%, what is the value in use to Amazing of this
trade name?
a.
$45,528
b.
$58,398
c.
$53,534
d.
$55,676
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