Blossom Company must perform an impairment test on its equipment. The equipment will produce the following cash flows: Year 1, $37,000; Year 2, $46,000; Year 3, $56,000. The discount rate is 12%. What is the value in use for this equipment? Use the present value table in your calculation. (For calculation purposes, use 5 decimal places as displayed in the factor table provided. Round final answer to 2 decimal places, eg. 5,275.25) Click here to view the factor table PRESENT VALUE OF 1. Click here to view the factor table PRESENT VALUE OF AN ANNUITY OF 1. Value in use $

Blossom Company must perform an impairment test on its equipment. The equipment will produce the following cash flows: Year 1, $37,000; Year 2, $46,000; Year 3, $56,000. The discount rate is 12%. What is the value in use for this equipment? Use the present value table in your calculation. (For calculation purposes, use 5 decimal places as displayed in the factor table provided. Round final answer to 2 decimal places, eg. 5,275.25) Click here to view the factor table PRESENT VALUE OF 1. Click here to view the factor table PRESENT VALUE OF AN ANNUITY OF 1. Value in use $

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter19: Capital Investment

Section: Chapter Questions

Problem 6CE

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