M&A – example 4 – Nairobi plcForums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AFM Exams › M&A – example 4 – Nairobi plcThis topic has 3 replies, 2 voices, and was last updated 7 years ago by John Moffat.Viewing 4 posts - 1 through 4 (of 4 total)AuthorPosts January 27, 2018 at 12:26 pm #433422 yiiyeoohParticipantTopics: 1Replies: 1☆Hi John,May i ask the discount total cash flow for year 1 to 5 (answer: 35, 42,47,52,207), how did you calculate for it?Thanks January 27, 2018 at 4:18 pm #433435 John MoffatKeymasterTopics: 57Replies: 54699☆☆☆☆☆I added the two cash flows together (and added 7 per year to each – the after tax synergy benefit) and then multiplied each flow by the relevant discount factor at 11% from the tables. January 28, 2018 at 4:47 pm #433648 yiiyeoohParticipantTopics: 1Replies: 1☆thank for the respond sir =)But may i ask how u get the 7? January 29, 2018 at 7:15 am #433727 John MoffatKeymasterTopics: 57Replies: 54699☆☆☆☆☆The question says that the synergy benefit is 10 p.a. before tax, and the tax rate is given as 30%. 10 – (30% x 10) = 7.AuthorPostsViewing 4 posts - 1 through 4 (of 4 total)You must be logged in to reply to this topic.Log In Username: Password: Keep me signed in Log In