PLEASE SOLVE IT ASAP IT IS URGENT AND DON'T COPY ANSWERS FROM ANOTHER 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. 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
