RE: RE: $5B and not a penny less
Rob,
Here is a simple formula to calculate NPV or annuity when you know the discount rate, the number of periods and one of the other two variables (in the case of a poet, you already know the NPV)
NPV = Annuity * (1 - ( 1 + i )^-n) / i
i = discount rate
n = nb of period (22 for POET valuation)
annuity = net yearly cash flow
So to find the cash flow that Pellegrino has figured (say the discount rate is 20%), you do;
1,300,000,000 = x * (1-(1+0.2)^-22) / 0.2
x = 264,819,718
Have fun!
CF