part 8 
question 8 now attached
Market Summary > Dow Jones Industrial Average NOADJI + Follow 27,625.63 -49 17 (018%) + 207 PM EST Discaimer 9) Suppose someone you know from home heard you are taking Engineering Economy and wants some financial advice. Their neighbor is a small business owner who is investing $125,000 into a T-shirt printing company (year 0). He believes that this should lead to annual sales of $22,500 per year (starting in year 1). There will be an increase yearly of $2,250 starting in year 2 in sales. There are expenses associated with this business of $2,500 in raw t-shirts and labor for the business. Your family friend has been ask to invest in this business, but only a small amount money for 6 Iyears. To figure out if you should do it you analyze multiple return on investments and analyze the risk of all options. su month 6 months YTD 1year 5 years Max 30,000 10,539 01 Nov 12.2004 20.000 10.000 To get a benchmark, you are going to evalute 2 data points: 1) What has been the historical rate of return of Adidas stock from 2014 to 2019 (Q8)? 2) What is the Rate of return of the Dow Jones Industrial Average for the last 15 years (2004 - 2019) 3) What is the rate of return for the T-shirt busines? 4) Considering the risk, do you think it is wise to invest in the t-shirt buisness. 1985 1995 2005 Open High 27 68620 27.69495 A What is the rate of return of DJIA over last 15 years? B What is the rate of return for Adidas over last 5 years? C What is the expected rate of return for T-shirt Business? DShould you invest in the T-Shirt Business (Yes/No) Financial news, comparisons and more Market Summary > Dow Jones Industrial Average NOADJI + Follow 27,625.63 -49 17 (018%) + 207 PM EST Discaimer 9) Suppose someone you know from home heard you are taking Engineering Economy and wants some financial advice. Their neighbor is a small business owner who is investing $125,000 into a T-shirt printing company (year 0). He believes that this should lead to annual sales of $22,500 per year (starting in year 1). There will be an increase yearly of $2,250 starting in year 2 in sales. There are expenses associated with this business of $2,500 in raw t-shirts and labor for the business. Your family friend has been ask to invest in this business, but only a small amount money for 6 Iyears. To figure out if you should do it you analyze multiple return on investments and analyze the risk of all options. su month 6 months YTD 1year 5 years Max 30,000 10,539 01 Nov 12.2004 20.000 10.000 To get a benchmark, you are going to evalute 2 data points: 1) What has been the historical rate of return of Adidas stock from 2014 to 2019 (Q8)? 2) What is the Rate of return of the Dow Jones Industrial Average for the last 15 years (2004 - 2019) 3) What is the rate of return for the T-shirt busines? 4) Considering the risk, do you think it is wise to invest in the t-shirt buisness. 1985 1995 2005 Open High 27 68620 27.69495 A What is the rate of return of DJIA over last 15 years? B What is the rate of return for Adidas over last 5 years? C What is the expected rate of return for T-shirt Business? DShould you invest in the T-Shirt Business (Yes/No) Financial news, comparisons and more
