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1. NYU has decided that it too wishes to acquire BU and has offered a one- time payment of $100,000. Which offer should BU accept

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1. NYU has decided that it too wishes to acquire BU and has offered a one- time payment of $100,000. Which offer should BU accept and why? BU should accept the offer from NYU because the future value of NYU's offer offer is higher than the future value of the Harvard O a. offer. Ob. Bu should accept the offer from Harvard because the PV of it's offer exceeds the PV of the NYU offer BU should accept the offer from Harvard because the future value of Harvard's cash flows is greater than the FV of NYU's cash C. flows d. BU shouldd accept the NYU's offer because the PV of the of NYU's offer exceeds the PV of the Harvard offer. 1. The BU Company is considering selling its School of Business to Harvard University. The proposed deal would require Harvard to pay BU $30,000 and $25,000 at the end of years 1 and 2, and to also make yearly payments (at the end of the year) of $15,000 in years 3 thru 9. Harvard would make a final payment to BU for $10,000 at the end of year 10. If the discount rate is 12% what is the present value of this series of payments? O a $54,585 b. $105,250 O c. $109,160 d. $104,520 Oe. $54,735 Of. none of the above

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