1. Original Scenario from Milestone 1 - Time Value of Money using 8% Interest Rate 8.00% FCF - 2016 FCF - 2017 FCF - 2015 6,082.00 Amounts* 3,573.00 6,007.00 (5,631.48) (5,150.03) (2,836.36) Pv* Total...


Analyze the implications of interest rate changes on the original calculation (Origninal WACC 8%).


What are the consequences or benefits for WACC decreasing?


What are the consequences or benefits for WACC increasing?


1. Original Scenario from Milestone 1 - Time Value of Money using 8%<br>Interest Rate<br>8.00%<br>FCF - 2016 FCF - 2017<br>FCF - 2015<br>6,082.00<br>Amounts*<br>3,573.00<br>6,007.00<br>(5,631.48) (5,150.03) (2,836.36)<br>Pv*<br>Total Pv*<br>*In millions<br>(13,617.88)<br>

Extracted text: 1. Original Scenario from Milestone 1 - Time Value of Money using 8% Interest Rate 8.00% FCF - 2016 FCF - 2017 FCF - 2015 6,082.00 Amounts* 3,573.00 6,007.00 (5,631.48) (5,150.03) (2,836.36) Pv* Total Pv* *In millions (13,617.88)
2. Change in interest rate and its implications - Lower the Interest Interest Rate to 5%<br>Interest Rate<br>5.00%<br>FCF - 2016 FCF - 2017<br>FCF - 2015<br>3,573.00<br>Amounts*<br>6,082.00<br>6,007.00<br>(5,792.38) (5.448.53) (3,086.49)<br>Pv*<br>Total Pv*<br>(14,327.40)<br>*In millions<br>3. Change in interest rate and its implications - Higher Interest Rate (15%)<br>Interest Rate<br>15.00%<br>FCF - 2016 FCF - 2017<br>FCF - 2015<br>Amounts*<br>6,082.00<br>6,007.00<br>3,573.00<br>(5,288.70) (4,542.16) (2,349.31)<br>Pv*<br>Total Pv*<br>(12,180.16)<br>*In millions<br>

Extracted text: 2. Change in interest rate and its implications - Lower the Interest Interest Rate to 5% Interest Rate 5.00% FCF - 2016 FCF - 2017 FCF - 2015 3,573.00 Amounts* 6,082.00 6,007.00 (5,792.38) (5.448.53) (3,086.49) Pv* Total Pv* (14,327.40) *In millions 3. Change in interest rate and its implications - Higher Interest Rate (15%) Interest Rate 15.00% FCF - 2016 FCF - 2017 FCF - 2015 Amounts* 6,082.00 6,007.00 3,573.00 (5,288.70) (4,542.16) (2,349.31) Pv* Total Pv* (12,180.16) *In millions

Jun 05, 2022
SOLUTION.PDF

Get Answer To This Question

Related Questions & Answers

More Questions »

Submit New Assignment

Copy and Paste Your Assignment Here