Makonis

Sir! .. 🙂 i am back with another question

part (a) – i my workings were correct …so all good
part (b) – i calculated the 30% and the 50% premiums – all good
part (c) – and here i got stuck and i am thinking the following:

the additional value created (equity) = 503m

so, i am saying to myself….Makonis has to pay 30% of 480 PLUS 480 so thats 480+144=624m so the project is really not worth it.

i mean.. if i am buying something, i just dont pay the profit, i pay the cost+profit so why is Mak only paying 144m??

pls explain this to me….

thank u!!