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Find the present value of the cash outflow

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Question - Pearson Limited acquires the net assets of Hardman Limited for a cash consideration of $80 000. One half is to be paid on acquisition date and the other half is payable in one year's time. The appropriate discount rate is 8% p.a. The present value of the cash outflow in one year's time is:

1. $36 364.

2. $37 037.

3. $40 000.

4. $43 201.

Reference no: EM132509820

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