Develop Your Skills DATA ANALYSIS CASE 1: DETERMINE MAXIMUM INVESTMENT PRICE skills On January 1, 2024, Delta Co. is considering purchasing a 40 percent ownership interest in Omega Co., a privately held enterprise, for $700,000. Omega predicts its profit will be $185,000 in 2024, projects a 10 percent annual increase in profits in each of the next four years, and expects to pay a steady annual dividend of $30,000 for the foreseeable future. Because Omega has on its books a patent that is undervalued by $375,000, Delta realizes that it will have an additional amortization expense of $15,000 per year over the next 10 years the patent's estimated remaining useful life. Any remainins excess paid by Delta over Omesa's fair value was attributable to indefinite- lived intangible assets. All of Omesa's other assets and liabilities have book values that approximate market values. Delta uses the equity method for its investment in Omega Required 1. Using an Excel spreadsheet, set the followins values in cells: * Detlta's cost of investment in Cmesa. * Percentage acquired. * First-year Omesa reported income. Projected srowth rate in income. Omesa annual dividends. Annual excess patent amortization. 2. Referrins to the values in (1), prepare the following schedules usins columns for the years 2024 through 2028. * Delta's equity in Omesa earnings with rows showing these: Delta's share of Omesa reported income. Amortization expense. Delta's equity in Omega earnines. Delta's investment in Omega balance with rows showing the followins: Besinnings balance. Equity earnings. Dividends. * Ending balance. * Return on besinnine investment balance = Equity earnines/Besinnines investment balance in each year. 3. Given the preceding values, compute the average of the projected returns on beginning investment balances for the first five years of Delta's investment in Omega. What is the maximum Delta can pay for Omega if it wishes to earn at least a 10 percent average return on beginning investment balance over the next five years? (Hint: Under Excel's Tools tab, select the Goal Seek capability to produce a 10 percent average return on beginning investment balance by changing the cell that contains Delta's cost of investment in Omega. Excel's Solver should produce an exact answer while Goal Seek should produce a close approximation. You may need to first add in the Solver capability in Excel under Tools> Excel Add-ins.)