Liquidation Analysis A lender is evaluating its exposure in providing debt to a technology company, FinTech. One part of the banks multi-step analysis is to determine the liquidation value of the company, as a back-stop means of establishing collateral for its loan. Using the model on the worksheet Liquidation Value apply the multiple mark-to-market adjustments associated with key balance sheets items (below). determine the revised liquidation value of each asset class (balance sheet value less adjustment). total revised asset values under liquidation and net out liabilities. use the model to determine ending liquidition value. Question 1: What is the net liquidation value for FinTech? Question 2: If the recovery rate on inventory for FinTech improves from 30% to 50% what would be the new net liquidation value? Note: Refer to the liquidation video, if needed, to complete the assignment. FintechCo Discounts and Adjustments - Mark-to-Market Value Accounts rec market discount Inventory market discount PP&E market premium Intangible Licenses mkt val ($000s) rs Adjustments Notes -20% Includes both collections issues & Costs Question 1: What is the net liquidation value for Fintech: Question 2: What is the revised liquidation value if the recovery rate on inventory improves from 30% to 50%: -70% Significant level of inventory unsellable except at deep discounts 19% Due to increase in real estate over book value $50 Valuation of patents