an uncle that you have never heard off who was living in an island in Thailand...

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an uncle that you have never heard off who was living in an island in Thailand died, you are his unique heir and he left you $500M. Since you are a very down to earth student, you have decided that this sudden strike of luck should not change your plans and you decided that you would be finishing your course of FIN2000 because you will learn a few things to manage your new fortune. Adam Neumann, the CEO of WeWork Corp, is worried because the Initial public offering is in jeopardy and he knows that the company needs money to cover the losses that for sure the company is going to suffered during the next few years. So, he is looking for new sources of founding and asking for money. He came to MDC because he knows that you have the money to lend him. Mr. Neumann asked you for a loan of $200M, he promised that he will start returning the money plus interest in 3 years from now. The first yearly payment will be of 50MM, then 150MM, then 200M,then 190M and finally a last yearly payment of $150M. Since you think that it will be a risk investment, you have decided to use a discount rate of 12%. a) Draw a timeline showing the money that you are lending WeWork and the payments that you are going to receive b) Calculate the present value of the payments that you are going to receive c) Should you lend wewok the money? Why? an uncle that you have never heard off who was living in an island in Thailand died, you are his unique heir and he left you $500M. Since you are a very down to earth student, you have decided that this sudden strike of luck should not change your plans and you decided that you would be finishing your course of FIN2000 because you will learn a few things to manage your new fortune. Adam Neumann, the CEO of WeWork Corp, is worried because the Initial public offering is in jeopardy and he knows that the company needs money to cover the losses that for sure the company is going to suffered during the next few years. So, he is looking for new sources of founding and asking for money. He came to MDC because he knows that you have the money to lend him. Mr. Neumann asked you for a loan of $200M, he promised that he will start returning the money plus interest in 3 years from now. The first yearly payment will be of 50MM, then 150MM, then 200M,then 190M and finally a last yearly payment of $150M. Since you think that it will be a risk investment, you have decided to use a discount rate of 12%. a) Draw a timeline showing the money that you are lending WeWork and the payments that you are going to receive b) Calculate the present value of the payments that you are going to receive c) Should you lend wewok the money? Why?

Answer rating: 100% (QA)

a Heres the timeline showing the money you are lending to WeWork and the payments you will receive Y... View the full answer