You are not assigning any purchase interest expense to this acquisition, as you are going to discount all the projected cashflows using your calculated WACC.

You want to know when this acquisition becomes profitable. You think it might take six or seven years. Calculate the projects NPV and IRR after year six and after year seven. As the project will be ongoing, you will not recapture working capital.

Fill in the cells that contain these responses with yellow paint: Total cash flow year one (1 pt), year 6 NPV (1pt), and IRR (1pt), and year 7 NPV (1pt), and IRR (1pt). These will be graded correct or incorrect.

Submit this as a spreadsheet that shows all work.

2. (5 pts) Regulation has been equated with whack a mole, steps are taken that solve immediate problems, yet new problems develop. Review the major US federal regulatory initiatives in/on the finance community of the last ~20 years. Why were these laws implemented and what has their impact been? Using the banking industry as an illustration, give specific examples of the causes of the rules and the results of the rules. The in-class PowerPoint does most of the heavy lifting here but use citations for any sources used. (You can do this in 200 - 300 words, max)