2013 June q1

This topic has 3 replies, 2 voices, and was last updated 11 years ago by John Moffat.

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November 23, 2014 at 2:31 am #212294
2009puser
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Pv after 4 years how to get it?
47.6 where to get it?
November 23, 2014 at 11:04 am #212358
John Moffat
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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.
November 23, 2014 at 4:13 pm #212458
2009puser
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No i do not realise how toget 47.8.
November 23, 2014 at 8:21 pm #212491
John Moffat
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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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