Discussion 2 After reading the Harvard Business school case study Valuation and

Discussion 2
After reading the Harvard Business school case study Valuation and Discounted Cash Flows by Michael E. Edleson (you will need to purchase the HBSP course pack, the link is in the syllabus) analyze and answer the three questions listed under the case study.
1. If you can purchase the ticket for $2.0 million, what annual rate of return will you get on your investment? What about if you win the bid at $1.5 million?
2. Given the current (July 1, 1992) prices and yields in the capital markets, what do you think is the approximate “fair market value” of the ticket?
3. If you factored taxes into this situation, how would it change your valuation of the ticket?