Question 1: Your company seeks to take over Good Deal Company. Your company’s offer for Good Deal is $5,000,000 in cash
Posted: Sun Jun 05, 2022 4:56 pm
Question 1: Your company seeks to take over
Good Deal Company. Your company’s offer for Good Deal is $5,000,000
in cash upon signing the agreement followed by 10 annual payments
of $200,000 starting one year later. The time value of money is
10%.
(Hint: change one of the variables in PW formula to see how it
impacts the PW. You can draw a spider plot if you’d like, but it’s
not required). (20 points)
Good Deal Company. Your company’s offer for Good Deal is $5,000,000
in cash upon signing the agreement followed by 10 annual payments
of $200,000 starting one year later. The time value of money is
10%.
(Hint: change one of the variables in PW formula to see how it
impacts the PW. You can draw a spider plot if you’d like, but it’s
not required). (20 points)