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Calculate need to discount to give us the present value

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Assume fair interest of 12% p.a

On 30 September 2016, Telkom acquired 650 000 of the 1 000 000 issued Class A shares of Cellnet, a Soweto based network provider . In terms of the purchase agreement with the previous shareholders of Cellnet, Telkom paid R1 800 000 for the shares in Cellner on 30 September 2017, interest free.

Question 1: If the delayed payment is interest free , do we still need to calculate need to discount it to give us the present value ?

Reference no: EM132559477

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