A company is considering selling a large piece of equipment within the next few years. If the current scrap value is £2,000,000, what would the price be in 3 years time if the annual inflation rate is 2%?

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
Problem 14EA: How much must be invested now to receive $30,000 for 10 years if the first $30.000 is received one...
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A company is considering selling a large piece of equipment within the next few years. If the current scrap value is £2,000,000, what would the price be in 3 years time if the annual inflation rate is 2%? 

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