New Med Corporation is a rapidly growing biotech company that has a required rate of return of 12%. It plans to build a new facility in Santa Clara County. The building will take 2 years to complete. The building contractor offered New Med a choice of three payment plans, as follows: (Click the icon to view the data) Present Value of $1 table Present Value of Annuity of $1 table Future Value of $1 table Future Value of Annuity of $1 table Read the requirements C. The net present value cost of Plan I is The net present value cost of Plan Il is Requirements The net present value cost of Plan III is Requirement 2. Which payment plan should New Med choose? Explain. 1. Based on the financial criteria, New Med should choose since it has the vnet present value cost. 2. 3. Using the net present value method, calculate the comparative cost of each of the three payment plans being considered by New Med. Which payment plan should New Med choose? Explain. Discuss the financial factors, other than the cost of the plan, and the nonfinancial factors that should be considered in selecting an appropriate payment plan. Requirement 3. Discuss the financial factors, other than the cost of the plan, and the nonfinancial factors that should be considered in selecting an appropriate payment plan. Begin by selecting two financial factors that should be considered in selecting an appropriate payment plan. Print Done a Now select two nonfinancial factors that should be considered in selecting an appropriate payment plan. New Med Corporation is a rapidly growing biotech company that has a required rate of return of 12%. It plans to build a new facility in Santa Clara County. The building will take 2 years to complete. The building contractor offered New Med a choice of three payment plans, as follows: (Click the icon to view the data) Present Value of $1 table Present Value of Annuity of $1 table Future Value of $1 table Future Value of Annuity of $1 table Read the requirements C. The net present value cost of Plan I is The net present value cost of Plan Il is Requirements The net present value cost of Plan III is Requirement 2. Which payment plan should New Med choose? Explain. 1. Based on the financial criteria, New Med should choose since it has the vnet present value cost. 2. 3. Using the net present value method, calculate the comparative cost of each of the three payment plans being considered by New Med. Which payment plan should New Med choose? Explain. Discuss the financial factors, other than the cost of the plan, and the nonfinancial factors that should be considered in selecting an appropriate payment plan. Requirement 3. Discuss the financial factors, other than the cost of the plan, and the nonfinancial factors that should be considered in selecting an appropriate payment plan. Begin by selecting two financial factors that should be considered in selecting an appropriate payment plan. Print Done a Now select two nonfinancial factors that should be considered in selecting an appropriate payment plan
