A3. Change 1.23% 2015-16 40.50% 2016-17 8% Interest Rate % Change FCF 20.88% Expected FCF - Years Amounts* FCF - 2018 FCF - 2019 |FCF - 2020 1,609.05 2,738.70 2,099.22 (2,535.83) (1,799.74) (1,277.32) Pv* Total Pv" *In millions (5,612.89) PV(I,N,0,FV) Pv=FVN/(1+I)'N $ 5,942.00 Future Value of Company * 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. Al. Interest Rate 8% FCF - 2016 FCF - 2017 FCF - Years Amounts* FCF - 2015 Adjusted 3,573.00 6,082.00 6,007.00 Pv* (2,836.36) (5,150.03) (5,631.48) Total Pv* *In millions (13,617.88) Pv=FVN/(1+1)^N PV(IN,0,FV) $ 13,617.88 2014 PV of FCF= * 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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Capital Gain

Any capital asset when sold can give the seller a higher or lower price from its purchase price leading to a capital gain or capital loss. The time period of holding an asset is decided based on if it is a long term or short-term capital gain. On that basis, the rate of taxation is decided if it is 20%, 15% or according to the tax brackets. The rate of taxation differs in the case of equity or debt, whether long or short term. The capital gain can be adjusted from capital loss to arrive at a net capital gain. The amount of gains and the exemption has to be reported in the tax return filed in the financial year in which the asset was transferred. The tax return can be filed quarterly, monthly, semi-annually or annually.