finance case 4pages

Read Mini Case #2: Capital Budgeting at Neuquén, Inc. and data in excel file ( i link below) carefully.

You can only use my source and data in my excel file ( my group calculated all data already)… no source in internet.

Answer 4 questions below ( each one atleast 1 pages)

1. What discount rate is appropriate for finding the value of Artforever.com?

Write a few paragraphs giving your answer and clearly explaining your reasoning and computations; show detailed computations in your Excel spreadsheet labeled Exhibit 1.

2. What are the relevant cash flows for valuing Artforever.com? Assume that your valuation is performed at the end of 2017, and that the values shown in Table 1 are end-of-year forecasts.

Write a few paragraphs giving your answer and clearly explaining your reasoning and computations; show detailed computations in your Excel spreadsheet labeled Exhibit 2.

3. Based on your answers to questions (1) and (2) above, what is the maximum price that Neuquén should pay to equity shareholders for Artforever.com?

Write a few paragraphs giving your answer and clearly explaining your reasoning and computations; show detailed computations in your Excel spreadsheet labeled Exhibit 3.

4. Under what conditions might you consider recommending that management make a higher offer than your recommended price in (3) above?

No computations are necessary, just a short discussion.