give a tu if you think ogc are moving north, page-5

Hi Crackpot and thank you for an excellent reply.

I have some questions:
1. How did u choose 12.5% for a discount rate?

2. When i use the NPV formula, for Macraes/Reefton i get a npv of ($15M x 4qtr x 7years)/ (1.125)^7 = $184.15M.

I am assuming Net Present Value considers only "NET" Earnings not "Sales". NET cash per qtr is around 15M from Macraes/Reefton at the moment.

What figure did u use for Net Earnings to do your calculation?

Looking forward to ur reply,

and with best regards.