Rationale for investment The business is offering these bonds for sale contracts with another business in China to assemble computer parts. The Chinese business has used child labor in the past, but it claims it has stopped this practice. However, the U.S. business selling these bonds has not investigated to verify whether these claims are true.

Assumptions to consider:

• 10-year bond
• 8% Coupon '
• Priced at a discount : $95
• Discount rate is 9%

Financial Option 2: Lease of $25 Million in Equipment

Rational for investment : The business's current equipment is efficient, but it uses a lot of electricity. The production line also creates significant waste material, including waste plastics. The business is looking into leasing newer, more environmentally friendly equipment that will still allow it to be at least as efficient in production as it is now.

Assumptions to consider :

• Annual cash flows generated with equipment: $4 million
• Discount rate is 12%
• 15-year useful life
• No salvage value

Financial Option 3: Purchase a $10 Million Building

Rationale for investment: The business is considering environmental, social, and corporate governance (ESG) factors as part of its investment in a new building for its headquarters. The building itself will be a Leadership in Energy and Environmental Design (LEED)-certified building. However, the new site currently has a large, inactive gas station that sold both gasoline and diesel fuel. The new site also has a large repair facility that was used for deliveries and tractor-trailer trucks for more than 50 years. Some restoration was performed on the site, but the previous owner ran out of funds before they could bring the site up to LEED standards. Four large fuel tanks remain on the site, and they will also need to be addressed per LEED standards.

Assumptions to consider:

• $10 million cash purchase
• Building generates additional net profits after tax of $1.25 million per year
• 20 year expected useful life of building
• Salvage value: $1.5 million
• Discount rate is 10%

Microsoft financial ratios

financial Evaluation : determine which of the three available investments are good financing options and describe the business's (Microsoft) likely future financial performance.

1. Bond Investment : Determine if the bond investment is a good financing option for the business's financial health. Use your financial analysis and other financial information to your support claims.
2. Capital Equipment : Determine if the capital equipment investment is a good financing option for the business's financial health. Use your financial analysis and other financial information to support your claims.
3. Building : Determine if the building investment is a good financing option for the business's financial health. Use your financial analysis and other financial information to support your claims.
4. Future Financial Considerations :Describe the business's likely future financial performance. Base your description on the business's current financial well-being and risk levels. Use financial information to support your claims.

Current Assets Current Liabilities Current Assets Current Liabilities Total Liabilities Total Assets Net Income Shares Outstanding CURRENT RATIO (Current Assets / Current Liabilities) Stock Price EPS $ $ $ $ 169,684,000.00 95,082,000.00 WORKING CAPITAL (Current Assets - Current Liabilities) $ $ 169,684,000.00 95,082,000.00 DEBT RATIO (Total Liabilities/Total Assets) 198,298,000.00 364,840,000.00 1.784606971 EARNINGS PER SHARE (Net Income / Weighted Average Common Shares Outstanding) $ 72,738,000.00 7,540,000.00 $ 9.65 74602000 9.646949602 0.543520447 PRICE EARNINGS RATIO (Share Price (end of quarter / EPS) $ 9.646949602 1.000316203 Total Revenue Total Assets Net Income Total Revenue TOTAL ASSET TURNOVER RATIO (Total Revenue / Total Assets) Total Assets Shareholder's Equity Net Income Total Assets $ $ FINANCIAL LEVERAGE (Total Assets / Shareholder's Equity) NI - Pref. Div. Shareholder's Equity $ $ 198,270,000.00 364,840,000.00 $ $ 0.543443701 364,840,000.00 166,542,000.00 2.190678628 NET PROFIT MARGIN (Net Income / Total Revenue) $ 72,738,000.00 $ 198,270,000.00 0.366863368 RETURN ON ASSETS (Net Income / Total Assets) 72,738,000.00 364,840,000.00 0.199369587 RETURN ON EQUITY (Net Income - Preferred Dividends / Shareholder's Equity) $ 72,738,000.00 166,542,000.00 $ 0.436754693