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Other Fields Homework Help Accounting Topic started by: Angelo Jazz Aniel on Nov 20, 2021



Title: VALUATION CONCEPT & METHODOLOGIES
Post by: Angelo Jazz Aniel on Nov 20, 2021
Bronze Mining is considering the acquisition of Copper Mining at a cash price of P6,000,000.  The primary motivation for Bronze’s purchase of Copper is for a special piece of drilling equipment that it believes will generate an after-tax cash flow of P2,000,000 per year during the next 5 years.  Copper Mining has liabilities of P9,000,000 and Bronze estimates that it can sell the remaining assets P6,500,000.  Bronze will use a 15 percent cost of capital for evaluating the acquisition.  Based on this information, what is the net value of the special drilling equipment? Round-off your PV factor to six decimal places.


Title: Re: VALUATION CONCEPT & METHODOLOGIES
Post by: bio_man on Nov 20, 2021
I found a similar question with a complete solution.

Question:

(https://biology-forums.com/gallery/43/6_20_11_21_10_04_32.png) (https://biology-forums.com/index.php?action=gallery;sa=view&id=43712)

Solution:

*attached

Hope this helps


Title: Re: VALUATION CONCEPT & METHODOLOGIES
Post by: Christian Padil on Dec 16, 2021
thankyou


Title: BFSF: VALUATION CONCEPT & METHODOLOGIES
Post by: Ramon Dela Cruz on Oct 10, 2023
Thank you