The following data apply to a non-current asset: £ Net realisable value 5,000 Historic cost 6,000 Net present value in use 7,500 Replacement cost 10,000 What is the deprival value? A) £5,000 B) £6,000 C) £7,500 D) £10,000

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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7) The following data apply to a non-current asset:         £

Net realisable value                                                       5,000

Historic cost                                                                  6,000

Net present value in use                                                7,500

Replacement cost                                                          10,000

What is the deprival value?

A) £5,000

B) £6,000

C) £7,500         

D) £10,000

Expert Solution
Step 1

Given:

Net realizable value                                                       5,000

Historic cost                                                                  6,000

Net present value in use                                                7,500

Replacement cost                                                          10,000

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