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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

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 *Amounts in Millions Interest Rate 8% FCF1 FCF2 FCF3 FCF4 FCF5 Amounts* Pv* $ $ $ $ Total Pv* *In millions

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