Question
I need help finding the solution to the NPV with the given information: Given: Interest Rate 8% FCF - Years FCF - 2015 FCF -
I need help finding the solution to the NPV with the given information:
Given:
Interest Rate 8%
FCF - Years FCF - 2015 FCF - 2016 FCF - 2017 Amounts*
6,082.00 6,007.00 3,573.00
Pv* (5,631.48) (5,150.03) (2,836.36)
Total Pv* (13,617.88)
Suppose that a potential buyer has offered to buy this company in three years. Based on the initial present value you calculated above in A1, what would be a reasonable amount for the buyer to pay for the company in three years' time?
Since the PV = -13,617.88
The future value of the above figure at the end of 3rd year stands at
-13,617.88 * (1.08)^3 = -17154.61
NPV = -17154.61 - "What number goes here"
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