Question
You are asked by Flatz Communications to evaluate the offer made for its communication networks by Galactic Hyper Communications: 15 annual payments of Ts100 quanta
You are asked by Flatz Communications to evaluate the offer made for its communication networks by Galactic Hyper Communications:
15 annual payments of Ts100 quanta (quanta = 10^10,000), with an option (C) before the 6 annual payment to buy out remaining 10 annual payments for Ts700 quanta, or an option (B) before the 11 annual payment to buy out the remaining 5 annual payments for Ts 400 quanta.
Current Flatz Economic Environment: The current 10 year Flatz Bonds are trading at a 7.5% annual yield. The FCB expects Flatz 1 Year Bond yields to potentially randomly fluctuate up to 300 basis points up and/or down from its current level over the next 15 years. The FCB currently has no plans to initiate Tslotz appreciation or depreciations for the next 5 years.
What is SOVA's forecasted expected current value of Galactic Hyper Communications offer for Flatz Communications communications networks? What is the range of current values you utilized to calculate your current expected value?
Please show your table(s) of payment streams, calculations and assumptions you utilized in SOVA's forecasts. Would this valuation be considered convex?
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