IN MMC (JUN 11)

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April 29, 2018 at 1:36 pm #449306
foeldh123
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IN MMC (JUN 11)
1. In the question, they have delayed 2 years for all the cash flow to discount for each of them. However, from my point of view, can’t we just discount 1~4 years and using those discounted value, multiply it with 1.11^2 since it will be released in 2 years later. Can’t I do in this way for the calculation of cashflow ?
April 29, 2018 at 1:58 pm #449324
John Moffat
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If I understand you correctly, then yes! It doesn’t matter how you arrive at the answer (provided as always that the marker can follow your workings OK).
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