Noble Limited Estimated That It Would Receive Future Cash Flows From The Use Of

Noble Limited estimated that it would receive future cash flows from the use of equipment as follows:

End of Year 1 $20 000

End of Year 2 $70 000

End of Year 3 $40 000

End of Year 4 $30 000

The discount rate was determined as 5%. The ‘value in use’ of the equipment is:

a. $141 774

b. $160 000

c. $142 727

d. unable to determine from the information provide

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