Question 1. You have been given the following information about a company. The centre column is based on audited results for its financial year ending 30 June 2019, while the right column is an expert's forecast of future change. Assume: all cash flows are at financial year end; corporate tax is 30 percent, depreciated value of PPE equals $750 million and average depreciation is 10 percent on a straight line basis; the company's only debt is a loan of $300 million with fixed interest of 8 percent per annum, with principal repayable in 2030; the company has 500 million shares on issue. a) Use discounted cash flow analysis with a discount rate of 12 percent PA to calculate the company's net present value at 30 June 2020 b) Use an alternative method to validate your estimate of the company's NPV c) On 25 June 2020, the company's share price closed at $8.50. In light of valuations above, what advice would you give an investor who is considering buying shares in the company