please help with question #1. Thanks

please help with question # . what is the future value (FV) and what is the two competing offers. Thanks

Faste Help Shape Format MAA BI UP A- Clipboard Font 29 Wrap Text General Merge & Center - $ % 91 extBox 1 Alignment Number KL M McCormick & Company is considering building a new factory in Largo, Maryland. James Francis, a landowner, is selling a 4.35 acre parcel of industrial zoned land with a listed sale price of $3,000,000.00 for the land. McCormick & Company is interested in the land and so is another manufacturing company. The competing manufacturing company has made a full offer of $3,000,000.00 for the land. McCormick & Company knows it can make an offer to outbid the competitor to obtain the land. So, McCormick & Company decided to offer $4,424,000.00. Now, the landowner must make a decision between the two competing offers. To make this decision, James should first identify the Future Value (FV) of each offer. James's bank is offering a 12 percent interest rate when invested through the bank managed growth stock portfolios. Let's help James make his decision by answering the following questions using the template to the right. 1. What is the Future Value (FV) of each offer? What is the two competing offers? 2. Based on your Future Value calculations, which offer should James accept? James should accept the offer from McCormick and onu 08 X f Number N Styles Editing " A B C D E F G ILMIN 2 3 McCormick & Company is considering building a new factory in largo, Maryland. James Francis, a landown, is selling a 1,35-acre parcel of industrial zoned land with a listed sale price of $3,000,000.00 for the land. McCormick & Company is interested in the land and so is another manufacturing company. The competing manufacturing company has made a full offer of $3,000,000.00 for the land. McCormick & Company knows it can make an offer to outbid the competitor to obtain the land. So, McCormick & Company decided to offer $4,424,000.00. 6 Now, the landowner must make a decision between the two competing offers. To make this decision, James should first identify the Future Value (FV) of each offer. James's bank is offering a 12 percent interest rate when invested through the bank-managed growth stock portfolios. Let's help lames make his decision by answering the following questions using the template to the right 1. What is the Future Value (FV) of each offer? What is the two competing offers? Y 13 2. Based on your Future Value calculations, which offer should James accept? James should accept the offer from McCormick and 14 Company PMT 10 12% $ 4,424,000.00 $13,740,272.471 16 3 Principal Percent Down Amount Financed 30% $ 3,096,800.00 12 McCormick & Company has decided in order for the company to have a minimal impact on chrrent cash flows, the company will need to borrow 70 percent Loan to Value (LTV) of the S4,424,000.00 offer in the form of a commercial acquisition and development loan to purchase the land. This means McCormick & Company will need to make a 30 percent down payment to secure the commercial acquisition and development loan. McCormick & Company is considering three different loan options: 18 4 N Y 19 20 Loan Loan A Loan B Loan 20 10 4 PV 6% $ 3,096, 800,00 .5% S3,096,800.00 5% $ 3,096,800.00 Loan A: 20-year loan with a fixed annual interest rate of 6 percent Loan B. 10 year loan with a fixed annual interest rate of 4.5 percent Loan C. 15 year loan with a fixed annual interest rate of 5 percent (S269,992.14 (5391,369.941 15298,357.80 22 23 24 5 N Loan Loan A 3. How much of the total $4,424,000.00 offer will be financed? 3,096,800 20 101 1/Y 6 4 % $ 3,096.800.00 (5269.993.101 .5% $ 3.096 0.001501369.941 Instructions Financing and Investing Corporate Valuation Annuities 898 8:34 PM 11/18/20192 O Type here to search Faste Help Shape Format MAA BI UP A- Clipboard Font 29 Wrap Text General Merge & Center - $ % 91 extBox 1 Alignment Number KL M McCormick & Company is considering building a new factory in Largo, Maryland. James Francis, a landowner, is selling a 4.35 acre parcel of industrial zoned land with a listed sale price of $3,000,000.00 for the land. McCormick & Company is interested in the land and so is another manufacturing company. The competing manufacturing company has made a full offer of $3,000,000.00 for the land. McCormick & Company knows it can make an offer to outbid the competitor to obtain the land. So, McCormick & Company decided to offer $4,424,000.00. Now, the landowner must make a decision between the two competing offers. To make this decision, James should first identify the Future Value (FV) of each offer. James's bank is offering a 12 percent interest rate when invested through the bank managed growth stock portfolios. Let's help James make his decision by answering the following questions using the template to the right. 1. What is the Future Value (FV) of each offer? What is the two competing offers? 2. Based on your Future Value calculations, which offer should James accept? James should accept the offer from McCormick and onu 08 X f Number N Styles Editing " A B C D E F G ILMIN 2 3 McCormick & Company is considering building a new factory in largo, Maryland. James Francis, a landown, is selling a 1,35-acre parcel of industrial zoned land with a listed sale price of $3,000,000.00 for the land. McCormick & Company is interested in the land and so is another manufacturing company. The competing manufacturing company has made a full offer of $3,000,000.00 for the land. McCormick & Company knows it can make an offer to outbid the competitor to obtain the land. So, McCormick & Company decided to offer $4,424,000.00. 6 Now, the landowner must make a decision between the two competing offers. To make this decision, James should first identify the Future Value (FV) of each offer. James's bank is offering a 12 percent interest rate when invested through the bank-managed growth stock portfolios. Let's help lames make his decision by answering the following questions using the template to the right 1. What is the Future Value (FV) of each offer? What is the two competing offers? Y 13 2. Based on your Future Value calculations, which offer should James accept? James should accept the offer from McCormick and 14 Company PMT 10 12% $ 4,424,000.00 $13,740,272.471 16 3 Principal Percent Down Amount Financed 30% $ 3,096,800.00 12 McCormick & Company has decided in order for the company to have a minimal impact on chrrent cash flows, the company will need to borrow 70 percent Loan to Value (LTV) of the S4,424,000.00 offer in the form of a commercial acquisition and development loan to purchase the land. This means McCormick & Company will need to make a 30 percent down payment to secure the commercial acquisition and development loan. McCormick & Company is considering three different loan options: 18 4 N Y 19 20 Loan Loan A Loan B Loan 20 10 4 PV 6% $ 3,096, 800,00 .5% S3,096,800.00 5% $ 3,096,800.00 Loan A: 20-year loan with a fixed annual interest rate of 6 percent Loan B. 10 year loan with a fixed annual interest rate of 4.5 percent Loan C. 15 year loan with a fixed annual interest rate of 5 percent (S269,992.14 (5391,369.941 15298,357.80 22 23 24 5 N Loan Loan A 3. How much of the total $4,424,000.00 offer will be financed? 3,096,800 20 101 1/Y 6 4 % $ 3,096.800.00 (5269.993.101 .5% $ 3.096 0.001501369.941 Instructions Financing and Investing Corporate Valuation Annuities 898 8:34 PM 11/18/20192 O Type here to search