Question
The Kelowna Financial Group (KFG) needs to prepare a sensitivity analysis for one of their clients. The client wishes to invest $10,000 per year over
The Kelowna Financial Group (KFG) needs to prepare a sensitivity analysis for one of their clients. The client wishes to invest $10,000 per year over the next several years and wants to know what the present value of that investment will be given changes in the discount rate and timeline. Specifically, they want to know what their investment will be worth in today's dollars over the next 4, 5, and 6 years. They also want to know the impact of a variable discount rate using 3.5%, 4.0%, 4.5%, and 5.0%. Like any good financial advisor, you realize that Excel's Present Value function can you help you with this calculation, but you want to build a reusable What-If model that can be re-calculated at any time with different values for the years and discount rate. Prepare a sensitivity table of the results using the above data and the appropriate What-If Tool(s).
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