I have a project coming up that I need help with.

Here are the general requirements:

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 wouldbe a reasonable amount for which the company should be sold at that future time?

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

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

The spreadsheet template:

Interest Rate 8%, and at 5% and 12%
		FCF1	FCF2	FCF3	FCF4	FCF5
Amounts		$ 113,000,000	$ 111,000,000	$ 108,000,000	$ 101,000,000	$ 97,000,000
Pv		$0.00	$0.00	$0.00	$0.00	$0.00
Total Pv		$0.00

Here are the particulars:

THE HOME DEPOT, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

amounts in millions, except share and per share data	February 1, 2015				February 2, 2014
ASSETS
Current Assets:
Cash and Cash Equivalents	$	1,723			$	1,929
Receivables, net	1,484				1,398
Merchandise Inventories	11,079				11,057
Other Current Assets	1,016				895
Total Current Assets	15,302				15,279
Property and Equipment, at cost	38,513				39,064
Less Accumulated Depreciation and Amortization	15,793				15,716
Net Property and Equipment	22,720				23,348
Goodwill	1,353				1,289
Other Assets	571				602
Total Assets	$	39,946			$	40,518
LIABILITIES AND STOCKHOLDERS EQUITY
Current Liabilities:
Short-Term Debt	$	290			$
Accounts Payable	5,807				5,797
Accrued Salaries and Related Expenses	1,391				1,428
Sales Taxes Payable	434				396
Deferred Revenue	1,468				1,337
Income Taxes Payable	35				12
Current Installments of Long-Term Debt	38				33
Other Accrued Expenses	1,806				1,746
Total Current Liabilities	11,269				10,749
Long-Term Debt, excluding current installments	16,869				14,691
Other Long-Term Liabilities	1,844				2,042
Deferred Income Taxes	642				514
Total Liabilities	30,624				27,996