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2013 June q1

22009puser11y ago
Pv after 4 years how to get it? 47.6 where to get it?
John MoffatJohn MoffatTutor11y ago#1
Do you really expect me to type out the whole answer to the question here? You have the examiners solution, so you really will have to say which part of the answer is causing you a problem and then I will do my best to explain.
22009puser11y ago#2
No i do not realise how toget 47.8.
John MoffatJohn MoffatTutor11y ago#3
The operating profit is 79.0 (it is inflating each year at 7.5% p.a.). The tax on it is at 25%, so 19.5. The additional capital investment is 10.9 So the free cash flow is 79.0 - 19.5 - 10.9 = 47.6
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