- This topic has 0 replies, 1 voice, and was last updated 5 years ago by
.
Viewing 1 post (of 1 total)
-
Posts
-
Hi tutor,
I don’t understand why to calculate the annuity for the year 5 onwards cash flow it is calculated as such 1/0.086-0.02. not understanding what this equation represents. why has the calculated wacc of 8.6% being deducted from 2% growth rate of cash flows from year 5 onwards?
Please get back to me thanks
Viewing 1 post (of 1 total)
- You must be logged in to reply to this topic.