A Swiss testing laboratory belongs to Quintavel (functional currency: euro). It will generate 52,000 units CHF in one year and 54,080 units CHF in two years, then nothing more. A pre-tax rate of 4 % is appropriate for cash flows in Swiss francs. On the day of the test, 1 CHF is exchanged at spot for 1.05 units EUR. What is the laboratory's value in use, in Swiss francs and then in euros?
- Cash flow in one year (CHF)
- 52,000
- Cash flow in two years (CHF)
- 54,080
- Swiss franc-specific discount rate
- 4 %
- Spot rate (EUR per 1 CHF)
- 1.05