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1 Initial investment: 2 Number of years: 3 Annual FCF: 4 Cost of capital: $2,150,000.00 4 $610,000.00 5.00% 23 P2-Q2: 24 25 Principal 26

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1 Initial investment: 2 Number of years: 3 Annual FCF: 4 Cost of capital: $2,150,000.00 4 $610,000.00 5.00% 23 P2-Q2: 24 25 Principal 26 FCF 27 Interest obligation 28 Interest payment (actual) 29 FCF after interest payment 30 Payment to principal 31 Excess wealth Year 0 1 2 3 $2,150,000.00 $2,150,000.00 $2,150,000.00 $2,132,875.00 4 $1,039,518.75 $50,000.00 $185,000.00 $1,200,000.00 $1,005,000.00 $107,500.00 $167,875.00 $106,643.75 $51,975.94 $50,000.00 $167,875.00 $106,643.75 $51,975.94 $0.00 $17,125.00 $1,093,356.25 $953,024.06 $0.00 $17,125.00 $1,093,356.25 $953,024.06 32 Unpaid interest $0.00 $57,500.00 $0.00 $0.00 ($86,494.69) $0.00 $0.00 33 34 Present value (at the beginning of year 1 which is the same as the year 0) of Excess wealth in Year 4: Note: P2-Q2's total score is 5 points. And, there are 30 cells (including the question below) you must fill up with the correct value. The 35 rubric for grade is posted on the Blackboard and is available under "Check Grades." ($71,159.39) 36 37 Do we accetp the project? Yes or No

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