AutoSave OFF AA OO... BUS303_Special_Prob2_Sp22 Home Insert Draw Design Layout References Mailings Review View Tell me Share Comments n 21 abbccbdte Abc dle AaBbccc AaBbccDdEt AaBb Malbec te IN Calibri (Bo... 11 A A Aay A BI U 36 x x ADA Pasid Normal = = = Nu Sparing Hearing Hacing ? Title Sulit Dictate Editar Styles Pane BUS 303 Business Finance Special Problem #2 a Scenario: Student is working for small company named A.P. Industries, LLC. There are five primary employees. Owners wish to establish a retirement account for the company. Their objective is that each employee have the possibility of acquiring $1,000,000 upon retirement. A.P. Industries is willing to contribute up to 3% of the employee's salary to help achieve this aim. Your assignment is to provide answers to the following questions and make an overall recommendation to management whether to proceed or not. Management needs you to address the factors that could impact the result as well. Create your own excel file 1. Questions to be answered in your "email" write-up: " - Based on the table of employee data, assuming a rate of return of 7.75% per year, what dollar amount would A.P. Industries have to contribute to the 401k plan for each year to reach total account value of $500,000 for each employee? What percentage of each employee's salary is required to meet the objective? 2. How would the required contribution change if the rate of return increased to 9.75% per year? 3. How would the required contribution change if the rate of return decreased to 5.75% per year? Note to management how your results reflect the Great Underlying Rule of Finance #1: Higher the risk, higher the required rate of return. 5. What projected impact could this have on the Income Statement, Balance Sheet, and cash flow situation? 4. Employee 1 2 Salary $175,000 $115,000 $87,000 $54,000 $54,000 Years to Retirement 15 20 30 35 40 3 4 5 Page 1 of 1 264 words LE English (United States ) Focus E 140%