Calculate the present value of the company

Assignment Help Accounting Basics

Reference no: EM132141594

Question: Time Value Of Money: Future Value

Instructions: For this milestone, submit a draft of the Time Value of Money section of the final project, along with your supporting explanations. Base your calculations on the data provided in this case study. Be sure to substantiate your claims.

Submit your calculations on the designated tab of the Final Project Student Workbook and your supporting explanations as a Microsoft Word document.

For additional details, please refer to the Milestone One Guidelines and Rubric document. The paper must be submitted as a 2- to 3-page Microsoft Word document in APA style, not including your calculations. Do not make plagiarism and I will check it by the turnitin.

Specifically, the following critical elements must be addressed:

I. Time Value of Money

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?

B. What are the implications of the change in present value based on risk? In other words, what does the change mean to the company, and how would you, as a financial manager, interpret it? Be sure to justify your reasoning.

C. Based on the future value of the company that you calculated, and being mindful of the need to effectively balance portfolio risk with return, what recommendation would you make about purchasing the company as an investment at that price? Be sure to substantiate your reasoning.

Information related to above question is enclosed below:

Attachment:- Final_project_student_workbook.rar

Reference no: EM132141594

Questions Cloud

High level how each supply chain driver uses information : Describe at a high level how each supply chain driver uses information.

Scannon employment contract valid : Is the Confidentiality provision within Scannon's employment contract valid?

Successful implementation of the tpp : Successful implementation of the TPP could have been regarded as the most important trade agreement that could have benefited members and non-members.

Determine the operations and distribution capabilities : Quantitatively/qualitatively assess your company's use and management of supply chain, distribution channels, and general logistics.

Calculate the present value of the company : I. Time Value of Money Calculate the present value of the company based on the given interest rate and expected revenues over time.

Operations and supply chain strategies implemented : How are operations and supply chain strategies implemented?

List two strategies for consulting stakeholders : List two strategies for consulting stakeholders about the vision and mission of the organization.

Is cloud computing clearly better for the environment : Is cloud computing clearly better for the environment?

Is effective communication more important in one theory : Is effective communication more important in one theory than the other? Why or why not?

User Account

All Pages