Question: Please provide your answer through calculations to the problem, by presenting the formulas you use, the calculations, the result and its interpretation. XYZ Company has

Please provide your answer through calculations to the problem, by presenting the formulas you use, the calculations, the result and its interpretation. XYZ Company has received an offer of $3 million from another company. Please advise if XYZ shall accept the offer based on the financial data below, if the opportunity cost of capital is 5% APR, and if after year 7 onwards your firm's earnings per share grow at a constant growth, Assume no taxes. Amounts are in thousands below: Time 1 2 5 6 7 8 (years) Total 150 155 156 160 Assets 165 170 173 178 183 Invest 5 5 3 5 5 ment Profits 120 122 123 121 120 S 122 119 S 2 120. 4 121

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