Time Value of Money Presentation

Time Value of Money Presentation

Description

Assignment Content

Competency

Determine current values of cash streams utilizing discounted cash flow techniques.

Student Success Criteria

View the grading rubric for this deliverable by selecting the “This item is graded with a rubric” link, which is located in the Details & Information pane.

Scenario

You are currently a financial analyst within Blue Butterfly Company, a small family owned corporation that manufactures magnetic bookmarks. Blue Butterfly management would like to provide a contributory pension plan for five current members of the management team. Management believes they can afford to invest $10,000 per month for the next 10 years. They anticipate the rate of return will be 8%. At the end of the 10 years, they expect retiring employees to start withdrawing from this pension plan. The anticipated longevity after retirement is expected to be 20 years, and management believes the rate of return on the investment to continue through the 20 years of retirement payout. Management has requested your assistance in determining relevant values so they can finalize the components of the pension plan.

Instructions

Using Excel, develop a spreadsheet presentation that covers the following:

Explain the concept of the time value of money, including the present and future value of $1, and present and future value of an annuity. Explain the difference between the annuity payment at the beginning and the end of the period.

Demonstrating the future value of the monthly cash investments for the next 10 years given the investment earns the projected 8% annual return.

In Excel, calculate the total monthly payment that can be withdrawn from the investment over 20 years given the anticipated 8% annual rate of return continues to be met through the 20 years of retirement. Provide management the monthly payment amount that will be available to payout in monthly pension amounts.

Assuming all five members of management will receive the same monthly annuity payment, provide management the proposed monthly retirement payment that can be offered to these five members of management.

Use the built-in cash flow functions in Excel to perform all calculations, explaining in the adjacent cells the values you entered the function.

Rubric:

A 4 Mastery

Accurate and robust explanation of Time Value Money. Highly accurate annuity payment calculation.

A 4 Mastery

Presentation accurately projects rate of return.

A 4 Mastery

Presentation accurately projects rate of payout for employees.

A 4 Mastery

Presentation accurately projects rate of payout for management.

A 4 Mastery

Accurate Excel calculations and clear and articulate explanations of values.

ORDER an A++ paper from our MASTERS and DOCTORATE WRITERS

Your assignment woes end here!

 

Who We Are
We are a professional custom writing website. If you have searched for a question and bumped into our website just know you are in the right place to get help in your coursework.

Do you handle any type of coursework?

Yes. We have posted over our previous orders to display our experience. Since we have done this question before, we can also do it for you. To make sure we do it perfectly, please fill out our Order Form. Filling the order form correctly will assist our team in referencing, specifications, and future communication.

Is it hard to Place an Order?

ORDER NOW FOR AN ORIGINAL PAPER ASSIGNMENT

1. Click on the  “Order Now” on the Main Menu and a new page will appear with an order form to be filled.

2. Fill in your paper’s requirements in the “PAPER INFORMATION” section and the system will calculate your order price/cost.

3. Fill in your paper’s academic level, deadline, and the required number of pages from the drop-down menus.

4. Click “FINAL STEP” to enter your registration details and get an account with us for record-keeping and then, click on “PROCEED TO CHECKOUT” at the bottom of the page.

100% Reliable Site. Make this your Home of Academic Papers.

SCORE A+ WITH HELP FROM OUR PROFESSIONAL WRITERS: ORDER NOW FOR AN ORIGINAL PAPER ASSIGNMENT

Always Order High-Quality Academic Papers from HERE 

5. From there, the payment sections will show, follow the guided payment process and your order will be available for our writing team to work on it. 

We will process your orders through multiple stages and checks to ensure that what we are delivering to you, in the end, is something that is precise as you envisioned it. All of our essay writing service products are 100% original, ensuring that there is no plagiarism in them. The sources are well-researched and cited so it is interesting. Our goal is to help as many students as possible with their assignments, i.e. our prices are affordable and services premium.

Looking for a Similar Assignment? Order a custom-written, plagiarism-free paper

Your assignment woes end here!

Comments are closed.