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I apologize for the confusion. I will post the assignment. I only need assistance with P2-Q2. Instruction: The following instruction is given to guide you

I apologize for the confusion. I will post the assignment. I only need assistance with P2-Q2. image text in transcribedimage text in transcribed

Instruction: The following instruction is given to guide you in completing the P2-Q1. Year 1: The capital supplied by investors is considered as a long-term debt. You need to make interest payment to the investors or creditors. The company should use the FCF to arrange this payment. After making the interest payment, the net free cash flow will be used to pay off the principal, which is $2,500,000. (This is actually depending on the company's decision. But, as far as you know, your company wants to pay off all debts ASAP using FCF.) Excess wealth is the amount of cash on hand after paying everything Year 2: The principal will be changed because your company paid a certain amount of money in year 1. This change will affect the interest payment that your company must make in year 2. Again, the change in the interest payment in year 2 will affect FCF after the interest payment and payment to principal. Year 3: Similar to year 2 Year 4: Similar to year 3 except for one thing. After making the interest payment, the company will have a large amount of cash on hand, which is more than enough to pay off the final principal. Requirements 3 (3 point): Fill the boxes (find the excess wealth) Once you find the excess wealth, compute the PV of the excess wealth by using: o o PV formula: PV Excess wealth

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