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PART B (32 points) Lunatics, an e-commerce sports company wants to buy Rowdy Trading Cards at a cost of S504 million. Rowdy will operate for

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PART B (32 points) Lunatics, an e-commerce sports company wants to buy Rowdy Trading Cards at a cost of S504 million. Rowdy will operate for 20 years. They expect annual cash flows from operations to be 570.1 million and its cost of capital is 12.1%. Draw an NPV profile of the purchase below. Compute the NPV at 12.1%,2%,17% and the RR. Illustrate these points on the graph below. FLL IN THE BLANK QUESTIONS IN BLACKBOARD: 1) The NPV for a discount rate of 12.1% is 2) The NPV for a discount rate of 2.0% is 3) The NPV for a discount rate of 17.0% is 4) The IRR is: . Identify the R on the graph below (round to one decimal point). 5) Should Lunatics proceed with the purchase? 6) The reason for your answer above is because the NPV is (positiveegative) and is (less /greater) than than zero. FILE RESPONSE: Download Part B Word doc. Computo the NPV at 12.1\%, 2\%, 17\% and the IRR. Enter this information, and answer questions in Blackboard. Draw an NPV profle using the obtained data points. You will upload your completed graph in the file response soction. You can upload your completed Word document or upload pictures of your work (combined to one document). You can only upload ONE document. NPV (SMM)

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