File Home Insert Draw Page Layout Formulas Data Review View Help Times New Roman 14 General X cut In Copy Paste Format Painter Clipboard AA === a.A- 29 Wrap Text Merge & Center BI U 38 $ -% -28 Insert Delete for Conditional Format as Cell Formatting Table Styles Styles Font Alignment Number 15 X f A B C D G H K M 1 Excel Exercise-Chapter 5 2 3 Value of a mixed stream. Acme, Inc., a maker of electronic surveillance equipment, is considering selling to a well- known hardware chain the rights to market its home security system. The proposed deal calls for the hardware chain to pay Acme $30,000 and $25,000 at the end of years 1 and 2 and to make annual year-end payments of S15,000 in years 3 through 9. A final payment to Acme of $10,000 would be due at the end of year 10. Note that Acme does not get a payment in year 0. a. Lay out the cash flows involved in the offer on a timeline. b. If Acme applies a required rate of return of 12% to them, what is the present value of this series of payments? C. A second company has offered Acme an immediate one-time payment of $100,000 for the rights to market the home security system. Which offer should Acme accept? 4 5 6 7 8 Solution 9 10 11 a. Lay out the cash flows involved in the offer on a time line. 12 13 14 CF CF, CF CF) CF CFS 15 16 17