[garlyliu]

so difficult and quite different from past papers….

[garlyliu]

OIC, so i’d better always use APV model. Thanks a lot!

[garlyliu]

Oh i suddenly figure out what i missed.
Sld the cash flow for part (b) be as follows:
Year0:(100)
1:40.45
2:40.45
3:40.45
4:40.45
5:40.45
6-infinity:0.45(p.a.)
For Year1-5, discounted by 18.2%(calculated WACC) and also need to add 0.45/(18.2%)?
So total gain for Part(b)=28.4?
Pls advise if i find the correct answer, thanks!
:

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