Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

You are the owner of XYZ, Inc. You had a record year, and you want to invest the extra capital. After doing some research, you

You are the owner of XYZ, Inc. You had a record year, and you want to invest the extra capital. After doing some research, you will write a project report detailing your financial considerations and findings to your business partners on your projected investment plan. Post 1: Initial Thread First, do some research at your local bank, through your retirement investment firm, or by reading articles on stock analysis. This can be done virtually. Investigate the financial terms of several investment options. What interest rate is being offered? Is the interest compounded daily, monthly, or yearly? Do your best to find out the financial details for at least two different investment options. You will be citing your references in APA style. Second, do some investment calculations. You may use a scientific calculator. For your investment: Choose an amount between $5,000 and $500,000 of extra capital for principal, P, the initial amount of money to invest. Choose between 5 and 30 years for t, the number of years you will let the account grow. Based on your research findings: Use the rate for r, the investment growth rate per year. If using the compound interest formula, use the appropriate value for ndepending on if the compounding is performed on a daily, monthly, or yearly basis. If compounding is continuous, then you will use a different formula called the continuous compounding formula. Compound Interest: Continuously Compounding Interest: Compound interest formula: A equals P times the quantity one plus r divided by n raised to the n times t power. Continuously compounding interest formula: A equals P times e raised to the r times t power Third, reflect on your calculations and present your financial guidance in a project report. You will make two different plans based on an aggressive and conservative forecast of the market. (You may also make a combination of the two rates, allocating different investment amounts that total your initial capital.) Your project report should contain the following: Introduction: One paragraph describing how investment could be beneficial to the company. Three body paragraphs addressing each of the following: Explain how compound interest works in your own words. Explain the two different forecasting plans with pros and cons for each. Present your calculations for each plan. Be sure to state the formula and outputs. Conclusion: One paragraph summarizing your financial considerations and findings and their significance to the company.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Managerial Accounting

Authors: Hartgraves And Morse

6th Edition

1934319805, 978-1934319802

Students also viewed these Accounting questions

Question

What is the name of the program?

Answered: 1 week ago

Question

Write short notes on Interviews.

Answered: 1 week ago

Question

Define induction and what are its objectives ?

Answered: 1 week ago

Question

Discuss the techniques of job analysis.

Answered: 1 week ago