Value an acquisition using PV

A competing firm, Raer, wants to sell one of its manufacturing plants and the rights to their patent, which expires in 5 years. The CFO expects that Spaero could generate an average $23mm in profit each year if they got in on this deal. The CFO wants to know how much Spaero should be willing to pay for this intellectual property at various discount rates.

In this exercise, you'll use what-if parameters to calculate multiple PV()'s at different discount rates.

If you have lost progress, close any open workbooks and load 3_6_acquisition_bid.pbix from the Exercises folder on the Desktop.