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In 1867, the US Secretary of State purchased Alaska from Russia for $7,200,000 (about two cents per acre).
Problem 1: At the time, the deal was considered a folly (i.e. crazy) but from our perspective today, did the US Secretary of State get a bargain?
Problem 2: What would it cost in 2007 if Alaska was in exactly the same condition as it was 140 years before and the prevailing interest rate over the 140 years was 4%.
Financial Statement Analysis and Preparation
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T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .
Computation of Free Cash Flow
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