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What would be the carrying value of the non-current assets

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Question - A PLC has non-current assets valued at historic cost of £13 million and the current climate means that the business has become unprofitable. The non-current assets could be sold for £7 million (net of disposal costs). The net present value of future cash flows discounted at the company's weighted average cost of capital (WACC) is £5 million. What would be the carrying value of the non-current assets after the impairment review?

a. £13 million

b. £5 million

c. £7 million

d. £12 million

Reference no: EM133080772

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