Free cash flows (FCF), for this exercise is difference between cash generated from operating income minus capital expenses at the end of your company's fiscal or calendar year. The present value of free cash flows is one method of determining a company's value to a potential buyer. Note: For Milestone One, please use the adjusted free cash flows calculated for your selected company on Tab 2 (Selected Co. for Project) of this Excel workbook. Use 5% as the interest rate for these questions. A B C D E 2 1 Milestone One: Time Value of Money (please fill in YELLOW cells) * Dollar amounts are in millions $ 3 4 Question 1. 10 5 Interest Rate 5% 6 7 FCF Years FCF in dollars* $ $ 8 00 9 LO [1 12 23 Pv* $ Total Pv* $ 13 15 *In millions $ EA $ FL G H 8 Year Year Year 2022 2021 2020 $ 10,113.00 $ 11,049.00 $ 4,308.00 M $ 1,853.00 $ 1,791.00 $ 1,484.00 M $ 8,260.00 $ 9,258.00 $ 2,824.00 F $ $ 3.70 $ 1.86% 12.04 $ (4,816.00) $ 2.80 $ 2.25 M 1.08% 7.75 $ 1.40% F 5.49 M 1,437.00 $ 1,972.00 M 699.00 199.24 $ 750.00 778.00 Y 258.48 $ 160.51 Y 20% 20% 20% 5% 5% 5% 9 Most Recent Calendar or Fiscal Year End-Then Two Prior Years 10 Enter Years 11 Net Cash Provided by Operating Activities 12 Capital Expenditures 13 Free Cash Flows 14 Cash Dividends per Share 15 Dividend Yield 16 Diluted Earnings per Common Share 17 Shareholder's Equity 18 Total Common Shares Outstanding 19 Common Stock Closing Price per Share 20 Effective Tax Rate (Use 20%) 21 Weighted Average Cost of Capital (Use 5%) 22 SASSASA SS EA $ D9 Clipboard A 7 Font : Xfx =PV(C5,1,,D7) B C Clipboard E9 A Font Alignment Xfx =PV(C5,2,,E7) B C D E 1 Milestone One: Time Value of Money (please fill in YELLOW cells) * Dollar amounts are in millions $ 2 3 4 Question 1. 10 5 Interest Rate 5% 6 FCF-Years FCF in dollars* 7 8 9 10 Pv* $ $ I F EA $ $ EA $ $ EA 7 N