Question
Choosing An Acquisition Target The actual and forecast free cash flows for Pathology Lab A and Pathology Lab B are as follows: Free Cash Flow
Choosing An Acquisition Target
The actual and forecast free cash flows for Pathology Lab A and Pathology Lab B are as follows:
- Free Cash Flow of Pathology Lab A
Actual: (Indian Rupees in thousands):
2018: 1528
2019: 1540
2020: 1486
Forecast: (Indian Rupees in thousands):
2021: 1333
2022: 1422
2023: 1470
- Free Cash Flow of Pathology Lab B
Actual: (Indian Rupees in thousands):
2018: 1464
2019: 1452
2020: 1374
Forecast: (Indian Rupees in thousands):
2021: 1514
2022: 1624
2023: 1717
Which lab should Metropolis choose as a better acquisition target if both labs are available for purchase at the same price?
Pathology Lab A
Pathology Lab B
Hint: solve it based on the free cash flow only
Choosing An Acquisition Target
The actual and forecast free cash flows for Pathology Lab A and Pathology Lab B are as follows:
- Free Cash Flow of Pathology Lab A
Actual: (Indian Rupees in thousands):
2018: 1528
2019: 1540
2020: 1486
Forecast: (Indian Rupees in thousands):
2021: 1333
2022: 1422
2023: 1470
- Free Cash Flow of Pathology Lab B
Actual: (Indian Rupees in thousands):
2018: 1464
2019: 1452
2020: 1374
Forecast: (Indian Rupees in thousands):
2021: 1514
2022: 1624
2023: 1717
Which lab should Metropolis choose as a better acquisition target if both labs are available for purchase at the same price?
Pathology Lab A
Pathology Lab B
Hint: solve it based on the free cash flow only
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