TechShop asked for a loan and offered 8% interest and a free lifetime membership. The lifetime membership also has value, so let's figure out what the total internal rate of return on this offer is! Complete the following question using an offer from TechShop on Canvas: Instructions: 1. Determine how much the annual benefit is worth for a techshop membership (is it a uniform value, is it a gradient?) Use their website and determine the value of "A" based on their membership fees. 2. Determine how many family members will qualify for the free membership (are you going to have a spouse? a child? more than 1 child?) 3. Figure out how long the membership will benefit each person. How many years you think youll be alive or how long the company will be in business for. In addition to using TechShops rates (Indicate how you came up with your number) 4. The present worth equation (present benefits - present costs) including all of the benefits. Remember to factor in that your children may not be old enough to use techshop today (e.g. you'll have your child in 3 years and they'll start using the membership when they turn 16 and use it until they're 21) 5. Calculate the Internal Rate of Return using the loan and the membership benefits in the letter. (use interpolation or spreadsheets to figure out the rate of return. * You must show all work to receive credit for this assignment.

the offer

TechShope offer below

Did you know that you can receive a free TechShop Lifetime Membership just by lending TechShop $25K for 10 years or by investing $25K in TechShop stock? If you didn't know that, you're not alone. I recently discovered, quite to my surprise, that many TechShop members still aren't aware of this awesome offer. They know they can invest in TechShop or become a lender, and they know they can buy a lifetime membership when we offer them, but they don't know that they get a Lifetime Membership for free when they become a lender or investor. The details are simple: Lend TechShop $25K for 10 years at 8% (first five years, interest only the next five years, principal and interest), and you and your family (including your kids, if you have any, until they're 21) will have access to all of TechShop's U.S. locations. In addition, you'll receive all of your money back plus interest. Or, if you prefer, you may purchase a minimum of $25K in TechShop Preferred Stock and receive the same Lifetime Membership. And if that wasn't already a great way to enjoy TechShop forever, through September 15, we will also give you ONE YEAR OF FREE CLASSES for yourself and everyone on your Lifetime Membership. If you're an individual, that's about $12,000 worth of membership and training absolutely FREE, and if you're married or have a domestic partner, that's around $16,000 worth of membership and training for free. It's even more if you have kids under 21. Just send a request for more information to ######@techshop.com and we will guide you through the easy process. If you've ever considered investing in TechShop and the next Industrial Revolution, the opportunity has never been better than right now. Already a TechShop investor? Please share this with a friend!