Tourism is starting to prosper. That's why local arrow manufacturer HIT Inc. decides to enter the souvenir market. The company is offered a machine to produce snowstorm globes. To evaluate the potential investment, the corporate planning department develops two alternative business cases (all figures in CU). The corresponding interest rate for all periods is 16%. Business Case A: 2012 -9000 2013 1800 2014 2015 2016 Cash Flow 3600 4200 8600 Business Case B: 2012 -9000 2013 5400 2014 9000 2015 1200 2016 0 Cash Flow Please calculate the NPV, the future value and the annuity of both business cases based on cash flows. Which business case is more favourable? HIT Inc. chooses to invest in business case B. Hence, the corporate planning department sets up a financing plan. The company requires equal annual cash withdrawals during the project period and has to borrow the whole investment of 9000 CU from a bank. Assume an interest rate of 16%. Only perform calculations for business case B! Business Case B: Cash Flow 2012 -9000 2016 2003 2002 2013 5400 2004 2014 9000 2005 Cash Flow 2015 1200 2016 0 a) Remember HIT Inc. has no money (i.e. it needs to borrow everything from the bank). Please calculate both, the complementary financing and the combined stream of payments for the year 2012 b) Analogue to a), please calculate the complementary financing and the combined stream of payments for the year 2013. Tourism is starting to prosper. That's why local arrow manufacturer HIT Inc. decides to enter the souvenir market. The company is offered a machine to produce snowstorm globes. To evaluate the potential investment, the corporate planning department develops two alternative business cases (all figures in CU). The corresponding interest rate for all periods is 16%. Business Case A: 2012 -9000 2013 1800 2014 2015 2016 Cash Flow 3600 4200 8600 Business Case B: 2012 -9000 2013 5400 2014 9000 2015 1200 2016 0 Cash Flow Please calculate the NPV, the future value and the annuity of both business cases based on cash flows. Which business case is more favourable? HIT Inc. chooses to invest in business case B. Hence, the corporate planning department sets up a financing plan. The company requires equal annual cash withdrawals during the project period and has to borrow the whole investment of 9000 CU from a bank. Assume an interest rate of 16%. Only perform calculations for business case B! Business Case B: Cash Flow 2012 -9000 2016 2003 2002 2013 5400 2004 2014 9000 2005 Cash Flow 2015 1200 2016 0 a) Remember HIT Inc. has no money (i.e. it needs to borrow everything from the bank). Please calculate both, the complementary financing and the combined stream of payments for the year 2012 b) Analogue to a), please calculate the complementary financing and the combined stream of payments for the year 2013