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Q#216

Kkhuramch8y ago
hello Sorry for disturbing you again Sir same confusion as in 212.. how he calculate value of CEW Co.. i try both methods you taught in lectures..but dont now why do get the right ans.. Is there any thing i miss from lectures...Which is related to this question??
John MoffatJohn MoffatTutor8y ago#1
This question is nothing to do with question 212. It is a normal NPV question. Buying CEW is just like investing in a project, and therefore the value is the NPV as normal (and the 'clue' is that you are given the cost of capital and the cash flows).
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