Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Scenario: The company that you work for is anticipating and planning for material negative impact in the future based on certain internal or external activities
Scenario: The company that you work for is anticipating and planning for material negative impact in the future based on certain internal or external activities that may transpire. Your engineering consulting team has been hired by your company to examine the minum interest rate of an investment that is required to grow a fund to a certain prescribed amount (Pa) by making certain fixed annual payments (P) into the fund over a certain fixed period (Pe). This will help plan for the potential negative impacts, just incase. Each team has a different requirement for their company's fund depending on potential adverserial outcome: Team 1 2 $ $ $ Pe (yrs 20 19.5 # - OU, 00019 S - 10 Fund Required by Company Mgmt Coronavirus Poor quality materials Poor quality medicines Legal issues Regulatory issues Poor investments Real estate a ash Supply chain issues Bad loans given Earthquake Tsunami Political unstablity Poor estimation of jobs Competitive threats Excessive flooding Contract Contract breach Accidents Labor union issues Government shut down Stock market crash Pa 19,000,000 $ 21,000,000 $ 23,000,000 $ 25,000,000 $ 27,000,000 $ 29,000,000 $ 31,000,000 $ 33,000,000 $ 35,000,000 $ 37,000,000 $ 39,000,000 $ 41,000,000 $ 43,000,000 +5,000,000 $ $ 45,000,000 $ 47,000,000 $ 49,000,000 $ 51,000,000 $ 53,000,000 $ 55,000,000 $ 57,000,000 $ 11 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ 500,000 490,000 480,000 470,000 460,000 450,000 440,000 430,000 420,000 410,000 400,000 390,000 380,000 370,000 360,000 350,000 340,000 330,000 320,000 310,000 12 13 14 15 16 17 18 19 20 18.5 18 17.5 17 16.5 16 15.5 20 19.5 19 18.5 18 17.5 17 16.5 16 15.5 a) Use MS Excel, show work, explain results. Each team will have a different analysis based on their company's requirement for the fund per above
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started