Question 2: Using the facts noted below: 1) determine whether AFN is positive or negative and by how much? And 2) and what would be AFN if you just found out that you can also raise $20 million in common equity? (10 Marks) FACTS Millions Profit Margin 10.0% Old sales 5 200.00 Number of Shares 2,000,000 New sales 5 225.00 Div. pershare S 3.00 Old Total Assets 5 300.00 Tax rate 50.00% New Total Assets S 375.00 Spontaneous AP 5 5.00 Spontaneous Accruals $ 15.00 5 20.00 huestion 3: You have won the lottery and have a choice between a) a $12,000,000 cash upfront payment or b) a series of payments of $310,000 per year for 35 years and with an additional one-time $4,000,000 lump sum payment at the end of 35 years. Question 1) Which is the better outcome and by how much in today's dollars? (Ignore taxes - these payments are tax free) You believe that interest rates will be 2.5% throughout the full period. Question 2) What should the annual payments be for you to be indifferent between each option? (10 Marks)