Case1:
Read the DATA CASE on pages 126-127 about Natasha Kingery who is considering furthering her education and is seeking financial advice.
Provide answers to questions 1-5 and prepare a written recommendation, outlining each of her options:
1. Determine the interest rate she is currently earning on her inheritance by going to Yahoo!
Finance (http://finance.yahoo.com or http://finance.yahoo.com/q?s=^tnx ) and clicking on the 1 0-year bond link in the market summary. Then go to "Historical Prices" and enter the appropriate date, June 1 , 2009, to obtain the closing yield or interest rate that she is earning. Use this interest rate as the discount rate for the remainder of this problem.
2. Create a timeline in Excel for her current situation, as well as the certification program and MBA degree options, using the following assumptions:
¦ Salaries for the year are paid only once, at the end of the year.
¦ The salary increase becomes effective immediately upon graduating from the MBA program or being certified. That is, because the increases become effective immediately but salaries are paid at the end of the year, the first salary increase will be paid exactly one year after graduation or certification.
3. Calculate the present value of the salary differential for completing the certification program. Subtract the cost of the program to get the NPV of undertaking the certification program.
4. Calculate the present value of the salary differential for completing the MBA degree. Calculate the present value of the cost of the MBA program. Based on your calculations, determine the NPV of undertaking the MBA.
5. Based on your answers to Questions 3 and 4, what advice would you give to Natasha? What if the two programs are mutually exclusive?-if Natasha undertakes one of the programs there is no further benefit to undertaking the other program. Would your advice be different?
MINI1:
Design a Mini based on the Learning outcomes and integrating current events.
Instructions: This project will reference the "FINANCIAL CRISIS" case titled "The American Recovery and Reinvestment Act of 2009," found on page 200. As a financial consultant, you will apply the knowledge gained in this course to attempt to change the outcome of the case to a positive one. At the end of each Unit,
prepare a report that answers the pertinent questions regarding the Unit content as it pertains to this Case. The questions applying to Unit One are described below:
a. What impact would Bonus Depreciation have on the balance sheet? Cite sources with in-text citations.
b. Explain how Increased Section 179 Expensing of Capital Expenditures would affect the NPV of a small business. Cite sources with in-text citations.
c. What effect would interest rates have on a business if they were able to extend loss carrybacks? Cite sources within-text citations.
Write a 3 to 5 Page paper (1000 to 1500 words) in APA format.
Below is a recommended outline.
1. Cover Page (See APA Sample paper)
2. Introduction
a. A thesis statement
b. Purpose of paper
c. Overview of paper
3. Body
4. Conclusion - Summary of main points
a. Lessons Learned and Recommendations
5. References - List the references you cited in the text of your paper according to APA format.
(Note: Do not include references that are not cited in the text of your paper)
Please follow this format for all questions
Write a 3 to 5 Page paper (1000 to 1500 words) in APA format.
Below is a recommended outline.
1. Cover Page (See APA Sample paper)
2. Introduction
a. A thesis statement
b. Purpose of paper
c. Overview of paper
3. Body
4. Conclusion – Summary of main points
a. Lessons Learned and Recommendations
5. References – List the references you cited in the text of your paper according to APA format.
(Note: Do not include references that are not cited in the text of your paper)
1)Mini1:
Design a Mini based on the Learning outcomes and integrating current events.
Instructions: This project will reference the “FINANCIAL CRISIS” case titled “The American Recovery and Reinvestment Act of 2009,” found on page 200. As a financial consultant, you will apply the knowledge gained in this course to attempt to change the outcome of the case to a positive one. At the end of each Unit,
Prepare a report that answers the pertinent questions regarding the Unit content as it pertains to this Case. The questions applying to Unit One are described
below:
a. What impact would Bonus Depreciation have on the balance sheet? Cite sources with in-text citations.
b. Explain how Increased Section 179 Expensing of Capital Expenditures would affect the NPV of a small business. Cite sources with in-text citations.
c. What effect would interest rates have on a business if they were able to extend loss carrybacks? Cite sources within-text citations.