From here, I asked you to use what the case tells us about the industry and deal to assess it from Berkshire's perspective. There is ample evidence in the case that might raise concerns about even a -0.8% growth rate in newspapers going forward. For example, see the steep recent declines in Exhibit 1 and particularly in Exhibit 2. On the other hand, the ultimate cash flow effects of the move towards digital circulation are as yet unclear. At best, there is enough evidence to be skeptical. For example, some sensitivity analysis on the growth rate would tell you that a 5% annual decline in cash flows after 2016 would drop the value of the assets all the way to roughly $115 million. On the other hand, we have thus far ignored the value in the loan and warrants that are part of the deal (as described in Question 4). The extra value there, which appears to be on the order of $65 to $70 million might assuage some of these concerns. In this way, we can understand the case synopsis, reconciling the views that Buffett's foray into the newspaper industry was a "huge surprise" with views that the deal was a "feat of financial engineering."