A1. Interest Rate 8% FCF - 2015 FCF -2016 FCF -2017 6,082.00 FCF - Years Amounts* 6,007.00 3,573.00 Pv* (5,631.48)(5,150.03) (2,836.36) Total Pv* |(13,617.88) *In millions Pv=FVN/(1+I)^N PV(,N,0,FV) The PV is NOT a negative number. It is a posiive number. This negative values calculated here are a result of the PV formula only

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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Question

What is the % change in FCF 

A1.
Interest Rate
8%
FCF - 2015 FCF -2016 FCF -2017
6,082.00
FCF - Years
Amounts*
6,007.00
3,573.00
Pv*
(5,631.48)(5,150.03) (2,836.36)
Total Pv*
|(13,617.88)
*In millions
Pv=FVN/(1+I)^N
PV(,N,0,FV)
The PV is NOT a negative number. It is a posiive number. This negative values calculated here
are a result of the PV formula only
Transcribed Image Text:A1. Interest Rate 8% FCF - 2015 FCF -2016 FCF -2017 6,082.00 FCF - Years Amounts* 6,007.00 3,573.00 Pv* (5,631.48)(5,150.03) (2,836.36) Total Pv* |(13,617.88) *In millions Pv=FVN/(1+I)^N PV(,N,0,FV) The PV is NOT a negative number. It is a posiive number. This negative values calculated here are a result of the PV formula only
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