You are starting a newly developed company. You have a combined amount of cash equal to $100,000 and are interested in determining how to maximize your returns on this money. To do this you should research, analyze, and present three feasible alternatives as to how this money could be spent, then make recommendations using the tools and techniques you have learned throughout the course. Each alternative should be evaluated over a time period of ten years.

Project Requirements:

Use a 10-year planning horizon, and whatever interest rate(s) you determine to be appropriate. Assume that all assets will be sold off at the end of the ten years.

The effects of inflation and depreciation should be included where appropriate. You do not have to include the effects of Tax (since this material is not covered).

One alternative out of the three may include investing in a stock, bond, mutual fund, money market, savings account, commodity (e.g, gold or other precious metal). These investments are all similar in that they have very simple cash flows.

One alternative out of the three may pertain to real estate.

The sources of all data, assumptions, and other information must be documented in your written report.

The project proposal, report, and presentation will be evaluated by the instructor, but peer evaluations and attendance during presentation week also contribute toward your final project grade. Examples of evaluation criteria is provided on the following page(s).