Danau Toba Bhd (DTB) is considering the purchase of DNas Sdn Bhd at the beginning of...

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Danau Toba Bhd (DTB) is considering the purchase of DNas Sdn Bhd at the beginning of 2020. A paperwork including the feasibility study has been prepared by the finance manager, Encik Makmur. He believes that DNas Sdn. Bhd. can generate cash flows of RM 80,000, RM120,000, and RM180,000 over the next three years, respectively. Encik Makmur feels that DNas Sdn Bhd will generate RM90.000 indefinitely at year four onwards. Cash outflow is estimated to be RM 30,000 per year. DTB has determined that a 14% rate of return is applicable to this potential purchase. Round your answer to the nearest ringgit. The discount factor at 14 percent is given as follows: Period 1 2 3 4 factor 0.87719 0.76946 0.67497 0.5921 REQUIRED 1 Calculate the fair value of DNas Sdn Bhd. Danau Toba Bhd (DTB) is considering the purchase of DNas Sdn Bhd at the beginning of 2020. A paperwork including the feasibility study has been prepared by the finance manager, Encik Makmur. He believes that DNas Sdn. Bhd. can generate cash flows of RM 80,000, RM120,000, and RM180,000 over the next three years, respectively. Encik Makmur feels that DNas Sdn Bhd will generate RM90.000 indefinitely at year four onwards. Cash outflow is estimated to be RM 30,000 per year. DTB has determined that a 14% rate of return is applicable to this potential purchase. Round your answer to the nearest ringgit. The discount factor at 14 percent is given as follows: Period 1 2 3 4 factor 0.87719 0.76946 0.67497 0.5921 REQUIRED 1 Calculate the fair value of DNas Sdn Bhd.

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SOLUTION To calculate the fair value of DNas Sdn Bhd we need to determine the present value of the e... View the full answer