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I have a question for Chapter 16 example 2.
The discount total cash flows for 1 yr, 2yr, etc….5yrs are 34, 41, 46, 51, 206.
Can someone explain how to get those numbers from?
I think its total of the two companies cash flows plus the synergetic benefit of
10 p.a less the gain of 4 by Nairobi shareholdersFor example in yr 1: Nairobi Cashflow 20 + Delhi CF 8 + Syng Benft 10 = total of 38 less gain of 4 = 34.
However there is need to clearly understand whats going on here. Somebody may clarify it better.
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