Investment at that price

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Milestone One: Time Value of Money Interest Rate FCF1 FCF2 FCF3 FCF4 FCF5 Amounts Pv $0.00 $0.00 $0.00 $0.00 $0.00 Total Pv $0.00 I know the future value of each year and the interest rate, need to answer in Excel pecifically, the following critical elements must be addressed:I. Time Value of MoneyA. Calculate the following time value of money figures:1. Calculate the present value of the company based on the given interest rate and expected revenues over time.2. Suppose the risk of the company changes based on an internal event. Recalculate the present value of the company.3. Suppose that a potential buyer has offered to buy this company in five years. Based on the present value you calculated above, what wouldbe a reasonable amount for which the company should be sold at that future time?B. What are the implications of the change in present value based on risk? In other words, what does the change mean to the company, and how wouldyou, as a financial manager, interpret it? Be sure to justify your reasoning.C. Based on the future value of the company that you calculated, and being mindful of the need to effectively balance portfolio risk with return, what recommendation would you make about purchasing the company as an investment at that price? Be sure to substantiate your reasoning

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This assignment is based on the basics concept of the accounting. In this given task, there are three problems given. In first, we have to evaluate the present value, total present value, net present value etc. Also, the second and third problems are theoretical, in which we have to provide the explanation and the justification in few words.

Reference no: EM131190295

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