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.
Hi Crackpot and thank you for an excellent reply.I have some...
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