Use Excel.
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 $135,000 into a T-shirt printing company (year 0). He believes that this should lead to annual sales of $25000 per year (starting in year 1). There will be an increase yearly of $3000 starting in year 2 in sales. There are expenses associated with this business of $2,000 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 years. To figure out if you should do it you analyze multiple return on investments and analyze the risk of all options.
To get a benchmark, you are going to evalute 2 data points: 1) What has been the historical rate of return of Steven Madden stock from 2015 to 2020 (Q8)? 2) What is the Rate of return of the Dow Jones Industrial Average for the last 15 years (2005 - 2020) 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.
Market Summary > Dow Jones Industrial Average INDEXDJX: DJI + Follow 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 $135,000 into a T-shirt printing company (year O). He believes that this should lead to annual sales of $25000 per year (starting in year 1). There will be an increase yearly of $3000 starting in year 2 in sales. There are expenses associated with this business of $2,000 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 years. To figure out if you should do it you analyze multiple return on investments and analyze the risk of all options. 29.102.51 -277 26 (0.94%) + Feb 7,5:03 PM EST Disclaimer 1 day 5 days 1 month 6 months YTD 1 year 5 years Max 30,000 10,796.01 Feb 11, 2005 To get a benchmark, you are going to evalute 2 data points: 1) What has been the historical rate of return of Steven Madden stock from 2015 to 2020 (28)? 2) What is the Rate of return of the Dow Jones Industrial Average for the last 15 years (2005 - 2020) 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. 20,000 10,000 1985 1995 2005 2015 Low 29,056.98 A What is the rate of return of DJIA over last 15 years? B What is the rate of return for Steven Madden over last 5 years? C What is the expected rate of return for T-shirt Business? D|Should you invest in the T-Shirt Business (Yes/No) Open High 29,286.92 29,286.92 Financial news, comparisons and more Market Summary > Dow Jones Industrial Average INDEXDJX: DJI + Follow 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 $135,000 into a T-shirt printing company (year O). He believes that this should lead to annual sales of $25000 per year (starting in year 1). There will be an increase yearly of $3000 starting in year 2 in sales. There are expenses associated with this business of $2,000 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 years. To figure out if you should do it you analyze multiple return on investments and analyze the risk of all options. 29.102.51 -277 26 (0.94%) + Feb 7,5:03 PM EST Disclaimer 1 day 5 days 1 month 6 months YTD 1 year 5 years Max 30,000 10,796.01 Feb 11, 2005 To get a benchmark, you are going to evalute 2 data points: 1) What has been the historical rate of return of Steven Madden stock from 2015 to 2020 (28)? 2) What is the Rate of return of the Dow Jones Industrial Average for the last 15 years (2005 - 2020) 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. 20,000 10,000 1985 1995 2005 2015 Low 29,056.98 A What is the rate of return of DJIA over last 15 years? B What is the rate of return for Steven Madden over last 5 years? C What is the expected rate of return for T-shirt Business? D|Should you invest in the T-Shirt Business (Yes/No) Open High 29,286.92 29,286.92 Financial news, comparisons and more
