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CAT Itd is contemplating acquiring RAT Ltd. On successful acquisition, incremental cash flows will as follows YEAR 1-10 11-20 21-40 41-60 CASH FLOW (Sh Millions)

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CAT Itd is contemplating acquiring RAT Ltd. On successful acquisition, incremental cash flows will as follows YEAR 1-10 11-20 21-40 41-60 CASH FLOW (Sh Millions) 3 2 1.5 0.5 If the appropriate discounting rate is 10 percent, how much should CAT Ltd pay in order to acquire RAT Limited

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