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Milestone Four: Interest Rate Implication (fill in YELLOW cells) 1. Original Scenario From Milestone 1Time Value of Money Using 8% Current Market Interest Rate
Milestone Four: Interest Rate Implication (fill in YELLOW cells) 1. Original Scenario From Milestone 1Time Value of Money Using 8% Current Market Interest Rate at 8% Interest Rate Years Amounts* Pv* Total Pv* *In millions 8.00% 2022 $ 8,260.00 $ 2021 9,258.00 $ 2020 2,824.00 $ (7,648.15) $ (7,937.24) $ (2,241.78) $ (17,827.17) 2. Change in Interest Rate and Its Implications Lower Current Market Interest Rate to 4% Interest Rate Years Amounts* Pv* 4.00% 2022 2021 EA 8,260.00 $ 9,258.00 $ 2020 2,824.00 $ (7,942.31) $ (8,559.54) $ (2,510.53) Total Pv* $ (19,012.37) *In millions 3. Change in Interest Rate and Its Implications 3. Increase Current market Interest Rate to 12% Interest Rate Years Amounts* Pv* 12.00% $ 2022 8,260.00 $ 2021 9,258.00 $ 2020 2,824.00 $ (7,375.00) $ (7,380.42) $ (2,010.07) Total Pv* $ (16,765.49) *In millions
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