https://sk-sagepub-com.ezproxy.umgc.edu/cases/the-right-of-acquisition-options-in-commercial-real-estate
1. Provide a thorough explanation of Bill Nichols’s claim that the maximum value to Hasperat of the purchase option is $113,449.38 (Exhibit 9). Explain how Nichols derived this value, with particular emphasis on his expected future cash flow and the discount rate he used.
2. Provide a thorough critique of Nichols’s valuation method. Nichols used a DCF, applying a discount rate to a future cash flow. Your critique should include a discussion of what is wrong with his assumptions as well as his technique.
