Holt Heating and Cooling, Inc., has one Fixed Asset, which it purchased 5 years ago for $10,400,000. So far, the company has taken a total of $5,400,000 in depreciation charges against the fixed asset, and a competitor has made a firm offer to purchase it for $6,400,000. The company's has $1,600,000 in Net Working Capital. If the company sold all of its Current Assets today, it would receive $2,600,000. The balance sheet shows $1,800,000 in Current Liabilities. By how much does the Market Value of the company's Total Assets exceed their Book Value?

$600,000

$2,400,000

$2,200,000

$800,000

Book Value is higher than Market Value

You have just won the Mega Gillions jackpot. The jackpot was $100 million. Your choices are to receive your prize in equal installments over 30 years, or take an immediate check for $47.8 million. Leaving out the effect of taxes, and assuming you can earn 5.6% on any money you invest now, which is the optimal option from a finance perspective?

Immediate payment

Installments

The value of each option is the same

Cannot determine based on the information given

Which of the following statements are True about cash flows to be received in the future?

I. For a given interest rate, the shorter the time period, the lower the Present Value

II. For a given time period, the higher the interest rate, the higher the Present Value

Only I is True

Only II is True

Both are True

Neither are True

Cannot make a determination based on the information given.