G Question 18 (1 point) A B E F 1 You perform cashflow forecasting for a firm. 2 The firm is a going concern (i.e. we assume that it will be in business forever) 3 Generally, you perform forecasting for 6 years and use terminal value concept 4 to account for beyond 6-year cash flows 5 6 Long term growth rate 596 7 WACC 9% 8 9 Yeari Year2 Year3 Year4 Years 10 Cashflow 100 115 125 135 140 11 Terminal value 12 13 The appropriate formula for termonal value in cell G11 is: Year 6 148 No correct answer option is given =(G10)/(C7-C6) O=(G10)/(C7*(1+C6)) =(G10*(1+C6))/(C7-C6) =(G10*(1+C6))/(C6-C7) G G Question 19 (1 point) A B E F 1 A person is trying to buy an old machine. 2 The machine seller has adopted the following pricing mechanism. 3 4 If the old machine is 'GREEN', 'RED', or "WHITE' and the machine age is less than 10 years, 5 the machine seller charges 12,000 for the old machine. 6 Otherwise, the machine seller charges 9,000 dollar. 7 8 Options - as stated in the question 9 Color 1 GREEN 10 Color RED 11 Color3 WHITE 12 13 Age cut-off 10 14 Price Charged: 15 Option 1 12000 16 Option 2 9000 17 18 19 20 The person is choosing a machine with following options: 21 Machine Color RED (Capital Letter) 22 Machine Age 9.5 23 24 Price of the machine is calculated below: 25 Price Charged 27 The appropriate formula for cell B25 is: 26 =IF(AND(OR(B21=B10,B21=B9,B21=B11), B22>B13),B15,816) =IF(ANDOR(B21=B10,B21=B9,B21=B11), B22>B13),B15,B16) =IF(ANDOR(B21=B10,B21=B9,B21=B11), B22>B13),B16,B15) =IF(OR(AND(B21=B10,B21=B9,821=B11), B22B13), B16,B15)