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Dangote Cement Plc, a subsidiary of the Dangote Group, is the largest company traded on the Nigerian Stock Exchange . Dangote Cement is Nigeria's largest

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Dangote Cement Plc, a subsidiary of the Dangote Group, is the largest company traded on the Nigerian Stock Exchange . Dangote Cement is Nigeria's largest cement producer with three plants in Nigeria and plans to expand its production, grinding and import capacities in 13 other African countries, through the purchase of a 10 year lease on existing plants. The cost of the lease would be E3.1 billion to Dangote Cement Plc. The CEO, Devakumar Edwin, has presented the following estimated net cash flows for each of the 10 years under each possibility (A, B and C) and the probability of their occurrence: The business has a cost of capital of 10 per cent. Required: Aliko Dangote, Chairman of Dangote's board of directors has contracted you to provide a recommendation on whether he should support the purchase of the lease. Do this on the basis of the most appropriate supporting calculations

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