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. A2. Interest Rate 8% FCF - Years FCF - 2015 FCF - 2016 FCF - 2017 10% Decrease Amounts* 5,473.80 5,406.30 3,215.70 (2,552.73) Py* (5,068.33) (4,635.03) Total Pv* *In millions (12,256.09) PV(I,N,0,FV) Pv-FVN/(1+1)^N S 12,256.09 2014 PV of Reduced 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.
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. A2. Interest Rate 8% FCF - Years FCF - 2015 FCF - 2016 FCF - 2017 10% Decrease Amounts* 5,473.80 5,406.30 3,215.70 (2,552.73) Py* (5,068.33) (4,635.03) Total Pv* *In millions (12,256.09) PV(I,N,0,FV) Pv-FVN/(1+1)^N S 12,256.09 2014 PV of Reduced 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.
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
Problem 1PS
Related questions
Question
100%
What are the implications of the change in
Transcribed Image Text: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.
Transcribed Image Text:A2.
Interest Rate
8%
FCF - Years
FCF - 2015
FCF - 2016 FCF - 2017
10% Decrease
Amounts*
5,473.80
5,406.30
3,215.70
(2,552.73)
Py*
(5,068.33)
(4,635.03)
Total Pv*
*In millions
(12,256.09)
PV(I,N,0,FV)
Pv-FVN/(1+1)^N
S 12,256.09
2014 PV of Reduced 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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