A1.Interest Rate8%FCF - 2015 FCF -2016 FCF -20176,082.00FCF - YearsAmounts*6,007.003,573.00Pv*(5,631.48)(5,150.03) (2,836.36)Total Pv*|(13,617.88)*In millionsPv=FVN/(1+I)^NPV(,N,0,FV)The PV is NOT a negative number. It is a posiive number. This negative values calculated hereare a result of the PV formula only

Question
Asked Nov 15, 2019
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Which figure in this worksheet is the Present Value of the company in 2014?

 

 

 

* *****I think it is

(13,617.88)
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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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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Expert Answer

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Step 1

The present value is calculated today to determine the present value of future cashflows at the given discount rate.

Step 2

Given:

Interest rate is 8%

Future cash flows for three years are as follows:

Future cashflows
$6082
$6007
Year
2015
2016
2017
$3573
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Future cashflows $6082 $6007 Year 2015 2016 2017 $3573

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Step 3

Explanation:

By using the excel sheet, the calculated NPV for the year 2014...

foix
NPV(Q365,Q362:Q364)
Q366
P
R.
358
359
360
Year
Cashflows
361
2015
6082
362
6007
2016
363
2017
3573
364
Interest rate
8%
365
366
$13,617.88
NPV
367
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foix NPV(Q365,Q362:Q364) Q366 P R. 358 359 360 Year Cashflows 361 2015 6082 362 6007 2016 363 2017 3573 364 Interest rate 8% 365 366 $13,617.88 NPV 367

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