A refrigerated truck owned by Aldivar has only two years of operation left. It should bring in 32,400 at the end of the first year and 46,656 at the end of the second, net pre-tax amounts. The market requires a pre-tax return of 8 % for an asset with this profile. Determine its value in use.
- Net cash flow for the first year
- 32,400
- Net cash flow for the second year
- 46,656
- Pre-tax return required by the market
- 8 %