Recalculate the present value of the company

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Reference no: EM131881388

A. 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 would be a reasonable amount for which the company should be sold at that future time?



Fiscal Year	Capital Leases		Operating Leases
2015	$	113	$	893
2016	111		817
2017	108		737
2018	101		638
2019	97		561
Thereafter through 2097	880		4,059
	1,410		$	7,705
Less imputed interest	726
Net present value of capital lease obligations	684
Less current installments	36
Long-term capital lease obligations, excluding current installments		648

Interest rate = 8%

Reference no: EM131881388

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