Leah Smith
FIN4501
September 14th, 2020
Financial Analysis #1
#1) The smartest decision is for Mr. Richard’s friend is to take out the $25 million and let him
earn the 6% return. The difference of the present value of the lawsuit if he takes out payments
over 10 years is $22,080,261. If he settles today and earns a 6% return he will get $33,455,639.
That’s a difference of $11,375,378.
#2) Mr. Richards’ client purchased a larger commercial building for $20 million dollars, with a
