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CalculationIntermediateVariant — group VG.IAS36.000401Published

Question · Foreign currency future cash flows

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
Your answer

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