Question
CAT ltd 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 (Shs Millions)
CAT ltd 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 (Shs 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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Financial Markets And Institutions
Authors: Frederic S. Mishkin, Stanley Eakins
6th Edition
0321374215, 9780321374219
