Case: Server Vault: “Reliable, Secure, and Wicked Fast” FIN 419 – Problems of Managerial Finance Homework Assignment 1. Use the information in the case to make assumptions for the growth in new facilities and the growth in servers per month . 2. Use the information in the case to forecast the Statement of Cash Flows for the next 30 months (until December 2002) a. Connect all cells with formulas and do not forget to lock the cells containing assumptions (they are in blue) b. Assume the company receives 15 mil. in July 2000 and no other funding until December 2002. c. If you follow the assumptions for growth in facilities and servers you should see the company running out of cash in several months. 3. Modify the timing of acquiring new facilities so that : a. The company does not run out of cash (keeps non-negative Ending Cash Balance ) b. Build no more than one facility per month 4. Identify what month the company Ending Cash Balance is the lowest – this is the most critical month in the growth of the company 5.
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- Fall '16
- Finance, cash balance