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Illustration 6. D has acquired 100% of the equity of F on March 31, 20X7. The purchase consideration comprises of an immediate payment of 10

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Illustration 6. D has acquired 100% of the equity of F on March 31, 20X7. The purchase consideration comprises of an immediate payment of 10 lakhs and two further payments of 1.21 lakhs if the Return on Equity exceeds 20% in each of the subsequent two financial years. A discount rate of 10% is used. Compute the value of total consideration at the acquisition date

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