A car park concession held by Cassignol expires in three years. Its pre-tax net cash flows, received at year-end, would be 31,800 in the first year, 58,320 in the second and 64,751.45 in the third. As risks differ by horizon, management uses a separate annual pre-tax rate for each maturity: 6 % for one year, 8 % for two years and 9 % for three years, each cash flow being discounted at the rate for its maturity over its term. What value in use is obtained?
- Net cash flow for the first year
- 31,800
- Net cash flow for the second year
- 58,320
- Net cash flow for the third year
- 64,751.45
- One-year annual rate
- 6 %
- Two-year annual rate
- 8 %
- Three-year annual rate
- 9 %