[Jelenko]

Ahaaaa, 10 is NPV and not PV. So simple, I did not read it correctly. Thank you 🙂

[Jelenko]

Dear Sir,

Can you please explain why was the initial value of investment (60m) took together with the net present value (10m) to calculate asset value for Jigu project? In the study text it was specificly mentioned that in calculation of Pa we are takin in to account future cash flows from the project EXCLUDING any inital investmen? Isn’t this 60 m actualy initial investment?

Thank you very much in advance.

[Jelenko]

Sorry, I just got it. Asset beta of the company is weihted average of those two parts, and maintainance was 30% of the company (looking at the proportion of non current assets).

[Jelenko]

Hi sir,

Can you please explain what is the logic behind the calculation of asset beta of travel services? Why they decrease company asset beta by 30% of asset beta of maintainance and then that together is only 70% of asset beta of travel services (divided by 70%)?

[Jelenko]

Hi sir,

Can you please explain why 4.329 (for five years) is used and not 3.546 (for four years)? Shouldn’t it consist of annuity from 2-5 (4 years) and not five years?

Thank you in advance.

Regards,
Jelena

[Author]

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