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need help with the questions that require exce,l Exercise Questions a. Create an investment planning model based on the assumptions given above. How much would

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need help with the questions that require exce,l

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Exercise Questions a. Create an investment planning model based on the assumptions given above. How much would the investments in common stock be worth at the end of the 5 years? b. Based on your answer to question 1, what should the annual investment be if the company's goal were to reach $500,000 at the end of the 5 years? HINT: Use Goal Seek in Excel (Review Appendix A if needed). Once you developed the above model, you began to think of these questions: . Are net sales growth rates truly expected to be the same every year? . Is it reasonable to expect a flat portfolio growth rate increase each year? We know that financial markets vary widely over time, so you are now thinking that a flat growth rate is not reasonable. Based on your analysis and taking into consideration the above questions, you decide to create a simulation model that accounts for the following: . Net sales growth rate per year from 1% to 6% . Annual portfolio growth rate on average 8% with a standard deviation of 5% a. Run the simulation model you created one time. What would be the value of the investments in common stock at the end of the 5 years? b. Based on your answer to question 3, what should the annual investment rate need to be if the goal were to reach approximately $500,000 at the end of year 5? HINT: Use Goal Seek. c. Discuss how the investment planning model you developed can be used as a template to develop other investment models for businesses and individuals alike.1. To begin, read the following scenario, and then answer the questions below to complete the exercise. Your manager has tasked you with developing an investment planning model for common stocks based on the following assumptions: 1. Sales for the current year are $1,000,000. 2. Net sales are expected to increase by 2% per year for the next 5 years. 3. Current investments in common stock is $250,000. 4. Annual investment rate in common stock is 1% of net sales per year for the next 5 years. . Dividends rate is estimated at 3% per year. 2. Your assignment must address all relevant parts of each question using the Les_ mplate. 3 Make sure to cite any references you use in APA format, including the textbook. The essay should be in APA format, doublespaced, and should include the following as listed in the template: - A cover page (List your name, your instructor's name, the course number and title, the assignment title, and the date of submission.) - Introduction (Explain what your essay paper is about in 1 to 2 paragraphs.) - Body (Answer essay questions in this section, and show all of your calculations including related screen prints of your Excel models.) Note: Include your screen prints in the Word document. . Conclusion (Explain what your essay paper covered, and write a selfreection paragraph: What did you learn from completing this assignment?)

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