Your manager has tasked you with developing an investment planning model for common stocks based on the following assumptions:

Sales for the current year are $1,000,000.

Net sales are expected to increase by 2% per year for the next 5 years.

Current investments in common stock is $250,000.

Annual investment rate in common stock is 1% of net sales per year for the next 5 years.

Dividends rate is estimated at 8% per year.

Create an investment planning model based on the assumptions given above. How much would the investments in common stock be worth at the end of the 5 years?

Based on your answer to question 1, what should the annual investment be if the company's goal were to reach $500,000 at the end of the 5 years? HINT: Use Goal Seek in Excel (Review Appendix A if needed).

Once you developed the above model, you began to think of these questions:

Are net sales growth rates truly expected to be the same every year?

Is it reasonable to expect a flat portfolio growth rate increase each year? We know that financial markets vary widely over time, so you are now thinking that a flat growth rate is not reasonable.

Based on your analysis and taking into consideration the above questions, you decide to create a simulation model that accounts for the following:

Net sales growth rate per year from 1% to 6%

Annual portfolio growth rate on average 8% with a standard deviation of 5%

Run the simulation model you created one time. What would be the value of the investments in common stock at the end of the 5 years?

Based on your answer to question 3, what should the annual investment rate need to be if the goal were to reach approximately $500,000 at the end of year 5? HINT: Use Goal Seek.

Discuss how the investment planning model you developed can be used as a template to develop other investment models for businesses and individuals alike.

4. A University is planning to construct a management committee which is composed of 5 academicians. 8 academicians from Economics Department and 12 academicians from International Relations Department are candidates for this committee. What is the probability that at least 4 academicians will be selected from International Relations Department? Please calculate the exact answer and show your calculations. (20 points)Complete this question by entering your answers in the tabs below. Balance Sheet Balance Sheet 2018 2019 Prepare the balance sheet for the business as of December 31, 2019. Hint: Report only total equity on the balance sheet and remember that total equity equals the difference between assets and liabilities. NETTLE DISTRIBUTION Balance Sheet December 31, 2019 Assets Liabilities Total liabilities Equity Total equity Total assets 0 Total liabilities and equity 0 (4) Three mutually exclusive alternative are being considered Initial Cost $500 $400 $300 Benefit at the end of the first Year 5200 $200 $200 Uniform Annual Benefits at end of subsequent years $100 $125 $100 Useful Life in years At the end of its useful life, an alternative is not replaced. If MARR is 10%, which alternatives should be selected? a) Based on the payback period? b) Based on benefit-cost ratio analysis c) Benefit/Costs Analysis using incremental Analysis.D Question 15 2 pts A country that exports more goods than it imports is said to have atn): O favorable balance of payment O negative trade deficit O favorable balance of trade O positive trade deficit O unfavorable balance of trade4. All goods in an economy are classified as agriculture (good 1) and manufacturing (good 2). These data are available for a country in the cases of autarky and of free trade. Price at Exports Imports Production Production autarky under free under free under under free trade trade autarky trade good 1 2 100 20 300 320 good 2 10 20 50 150 140 Calculate the gains from free trade, as the change to the welfare from autarky to free trade evaluated at autarky prices. Report the gains from free trade as a percentage of initial GDP (ie. total expenditures at autarky)