Question 11.Act.3: Libra plc has an estimated terminal value (representing cash...

Financial Management for Decision Makers

Libra plc has an estimated terminal value (representing cash flows beyond the planning horizon) of £100 million. What is the present value of this figure assuming a discount rate of 12 per cent and a planning horizon of:

(a) 5 years

(b) 10 years

(c) 15 years?

(Hint: You may find it helpful to refer to the present value table in Appendix A at the end of the book.)

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