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In this particular transaction, the return to traders could possibly be calculated by discounting all income flows on an acceptable lower price price. There is no price reduction charge presented, how ever by calculating the typical interest fee that Lehman-Berkshire Hath absent receives on financial loan, which is predicted being eighteen %, it can be used as a discount fee in calculating traders return.The calculated NPV for Trader from the transaction is $114.41 million.
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