Q#216

This topic has 1 reply, 2 voices, and was last updated 8 years ago by John Moffat.

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August 28, 2017 at 1:08 pm #403908
khuramch
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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??
August 28, 2017 at 5:13 pm #403939
John Moffat
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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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