A group of people, each person knowing at least one other pe…

A group of people, each person knowing at least one other person in the group, is discussing graphics cards for their computers. Alex is looking to upgrade her graphics card to an AMD Radeon 9070 XT, but none are in stock for a reasonable price. However, James, who buys and trades computer parts and just so happens to have one spare 9070 XT in his car, offers to Alex “Hey Alex, I will sell my extra card to you for retail price–USD 600. You can either pay me right now or promise to pay me later. How about it?” Another member of the group, Dana, jumps up immediately and exclaims “I’ll take it for USD 700, James!” A moment later, Alex says “I promise to pay you USD 600 for it later, James!” A second later, Rick, who happens to be James’s landlord, tells James “Sell me that graphics card or I will double your monthly rent!” James, very much aware how costly his rent already is, immediately runs out to get the graphics card, hands it over to Rick, and Rick hands over USD 600 to James. Alex, surprised, challenges Rick. “What the hell, dude? That is MY graphics card!” Rick responds, “What are you talking about? James literally just sold it to me, right in front of you. You don’t own anything.”   Is there a legally enforceable agreement between (a) James and Alex, (b) James and Dana, or (c) James and Rick? Explain fully. RAC format for each response.

This question is worth 30 points. Please use the Excel file…

This question is worth 30 points. Please use the Excel file to finish this question. Template_Final exam essay question 260428-1.xlsx Here are the details of the question:  BMBA 9460 group is carrying out a set of analysis to decide whether to start a new company called MBA Starters Inc (MS). If we start MS in 2026, MS will have no sales in 2026. MS is expected to have sales of $150 million in 2027 and the sales will grow at the rate of 20% in 2028; 30% in 2029; 20% in 2030; and 3% from 2031 on forever. We expect that net income will be 48% of sales (based on the estimation that EBIT to be 60% of sales and we have to pay a corporate tax rate of 20%). We expect that increases in net working capital requirements to be 9% of any increase in sales, capital expenditures to be 7% of sales, and depreciation expenses to be 6% of sales. The weighted average cost of capital is estimated to be 13%. To start the company, we need to invest $700 million at the end of 2026. As a potential CEO, would you recommend us to start the new company based on the NPV? What’s the potential value of this decision? (hint: The potential value can be measured using the NPV of the project.) If we are planning for an IPO at the beginning of 2027 to sell all the equity for 30 million shares, what is the fair price for each share of our company stock? What’s the internal rate of return (IRR) of the project assuming that we invest and sell the firm at the beginning of 2032? Would you recommend us to start the new company based on the IRR? More specifically, (2 points) the sales in 2032 is calculated as __________× _________ = __________; (2 points) the net income in 2031 is calculated as __________× _________ = __________; (2 points) the depreciation in 2030 is calculated as __________× _________ = __________; (2 points) the capital expenditure in 2029 is calculated as __________× _________ = __________; (3 points) the increase in the net working capital in 2028 is calculated as __________________________________________ = __________; (3 points) the free cash flow in 2027 is calculated as ___________________________________________________________ = __________; (3 points) the terminal firm value at the beginning of 2032 is calculated as     ___________________________________________________________ = __________;   (3 points) the total firm value at the beginning of 2027 is calculated as     ___________________________________________________________ = __________;   (2 points) the fair stock price at the IPO is calculated as   ________________________________________________________ = __________per share; (3 points) the NPV of this project before we make any investment is calculated as (You can either write the formula for the NPV calculation or the financial keys that you use to calculate the NPV here.)     ___________________________________________________________ = __________;     (1 point) based on this NPV, we ___________________(should or shouldn’t) start the new company.   (3 points) The internal rate of return (IRR) of the project assuming that we invest and sell the firm at the beginning of 2032 is ___________________________%. (1 point) based on this IRR, we ___________________(should or shouldn’t) start the new company.  If you used the Excel template file, please upload your completed Excel file here (Click “Insert” function above -> “Document” -> “Upload Document” -> Click “Upload File” to browse your computer -> Choose your Excel file -> Click “Submit”) . If you upload your Excel file, please name it LastName_FirstName_Essay.xlsx. If you did not use the Excel file, you may type your answer in the text field.