Question
New chat User Solve correctly asap....don't copy ........... 10. Daruma (Pty) Ltd has been offered to buy an existing manufacturing plant from a neighbouring company.
New chat User Solve correctly asap....don't copy ........... 10. Daruma (Pty) Ltd has been offered to buy an existing manufacturing plant from a neighbouring company. It is estimated that the existing plant will generate a net cash flow of R4 million per year for the next the next ten years. It is estimated that after 10 years, the plant will be sold for R15 million. What is the maximum amount that Daruma (Pty) Ltd should be willing to pay for this investment if its relative low risk justifies an annual required rate of return of only 10%? a) R55 000 000.00 b) R30 361 417.76 c) R24 578 268.42 d) R39 578 268.42 e) None of the above
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