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Example 2 – Nairobi & Delhi
Help – don’t understand the cash flows in the answer 🙁
year 1: 28 v 35
year 2: 35 v 42
year 3: 40 v 47
year 4: 45 v 52
year 5: 200 v 207The synergistic benefits per the question are 10 p.a. There is tax at 30%. So the after-tax benefit is 10 – (30% x 10) = 7 p.a.
Brain definitely was not in gear – additionally I was reading 10% increase pa 🙁
Thanks
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