Return

• Becky’s Education: As discussed in the education analysis, I recommend that you sell your EE Savings Bonds and use the funds to make a contribution into a 529 Savings Plan for Becky. However, this lump sum will not be enough money to cover all education costs, so I also recommend that you invest $150 monthly into the 529 Savings Plan. • Mia’s Art Gallery: The future value of Mia’s art gallery is $136,194.64. In order to reach this goal $248.89 will need to be saved monthly in the moderately…

A. Suppose the company is considering a potential investment project to add to its portfolio. Calculate the following items: Before Home Depot calculates the net present value (NPV), internal rate of return (IRR), terminal value (TV), and modified internal rate of return (MIRR) of its newest potential investment project, the company must first calculate its free cash flows. The calculation begins by subtracting the operating costs and the 20% depreciation expenses from the cash flows…

best method for investment project valuation (Goh, Kuo, Ong, & Rodrigues, 2009). It tells whether the investment will increase the firm’s value (Peterson-Drake, n.d.). Indicates whether a proposed project will yield the investor’s required rate of return (Jory, Benamraoui, Boojihawon, & Madichie, 2016). It is consistent with the theory of wealth maximization (Imegi, & Nwokoye, 2015). Moreover, net present value method considers all the cash flows, it makes use of all the project cash flows, does…

portfolio theory basically helps in making optimum portfolio by interpreting, and evaluating risk and return of different risky assets. Basically, the portfolio theory is all about analyzing the balance in between the minimizing risk and maximizing return. However, the objective of this theory is to select one’s investment in that which could diversify the risk without reducing the expected return.…

funds’ principal value yet provide a reasonable rate of return; 2) ensure the company with sufficient liquid investments in order to meet an unexpected demands for cash; 3) control Banc One’s reported earning sensitivity to flunctuations in interest rates; 4) achieve all the tasks above without the bank’s capital…

Systematic risk which is known as market risk that refers to the variation in the returns on securities, which arises due to macroeconomic factors of business such as social, economic and political factors. Changes to the government policies cause an effect or influences systematic risk. There are different types of systematic risk such…

methods. Whether it is OJT, an apprenticeship/internship, traditional lecture, online learning or simulations; training employees is crucial to organizational success. Sufficient funding should be placed in the training budget to ensure a satisfying return on investment (ROI). Through my adult life, I have encountered most, if not all of the methods of training that many organizations use today. Companies are in the business of making profits, and the cost of training is always a…

used? This is a technique used to spread your investment dollars across several asset categories. The investment categories may include cash and cash alternatives, bonds, stocks, real estate, mutual funds, imaginable. The goal is to maximize your return. 3. What are common stocks? What are the advantages and disadvantages of…

Kisan Vikas Patra was relaunched later in 2014, with certain reforms that addressed the loopholes in the earlier version. It is expected to be beneficial for investors as it is a government-backed investment option that offers definite and safe returns.…

two to divide, since Harris also demanded a interest at the prime rate. As Smith owns 51% of the company, his total earning in five years is $54,468, while Harris not only gets all of his loan back, he also puts in only $5,000 and gets $52,332 in return, an extra 10.5 times of what he had…