Scenario: Student is working for small company named Adton, LLC$.$ There are five primary employees.

Owners wish to establish a retirement account for the company. Their objective is that each employee

has the possibility of accumulating $$1,000,000$ for retirement. Adton is willing to contribute up to $4\%$ of

the employee's salary to help achieve this goal.

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.

Questions to be answered in your "email" write$-$up:

Based on the table of employee data and assuming a rate of return of $7\mathrm{.}75\%$ per year, if Adton

contributes $4\%$ of each person's salary until they retire, how much would be in the employee's

$401K($assuming only the employer's portion$)?$ Does that meet the $$500,000$ goal?

What total dollar amount would Adton have to contribute to the $401k$ plan for each year to

reach account value of $$500,000$ for each employee?

If a $4\%$ contribution rate does not meet the $$500,000$ objective when grown at $7\mathrm{.}75\%,$ what

percentage of each employee's salary is required to meet the objective?

If the rate of return increased to $10\mathrm{.}25\%$ per year, what is the new total amount of company

contributions required?

If the rate of return decreased to $3\mathrm{.}75\%$ per year, what is the new total amount of company

contributions required?

Create "email" to management with the results of your calculations. Describe how your results reflect

the Great Underlying Rule of Finance #$1$: Higher the risk, higher the required rate of return.