Fluent Essays

Document: Project Two Financial Assumptions Use this document to help you complete this project.   Document: Project Two Business Options List Use this document to select your chosen business for this project.   Shapiro Library Resource: Mergent Online Use this resource to help you complete this project.  https://www-mergentonline-com.ezproxy.snhu.edu/basicsearch.php  You may use the provided Project Two Financial Analyst Report template FIN 320 Project Two Financial Analyst Report [Note: To complete this template, replace the bracketed text with your own content. Remove this note before you submit your report.] Financial Analysis, Financial Evaluation, and Financial Recommendation(s) Financial Analysis A. Financial Calculations: Using the most current quarter’s financial statements for your chosen business and the Financial Formulas spreadsheet, calculate the financial formulas below to assess the business’s financial health. · Working capital: · [Write the result of the calculation and what it says about the company’s health.] · Current ratio: · [Write the result of the calculation and what it says about the company’s health.] · Debt ratio: · [Write the result of the calculation and what it says about the company’s health.] · Earnings per share: · [Write the result of the calculation and what it says about the company’s health.] · Price/earnings ratio: · [Write the result of the calculation and what it says about the company’s health.] · Total asset turnover ratio: · [Write the result of the calculation and what it says about the company’s health.] · Financial leverage: · [Write the result of the calculation and what it says about the company’s health.] · Net profit margin: · [Write the result of the calculation and what it says about the company’s health.] · Return on assets: · [Write the result of the calculation and what it says about the company’s health.] · Return on equity: · [Write the result of the calculation and what it says about the company’s health.] B. Working Capital Management: [In one paragraph, explain the impact of working capital management on the business’s operations. Provide examples to support your claims.] C. Bond Investment: [In one paragraph, analyze the risks and benefits of the business choosing to invest in a corporate bond, including the necessary ethical considerations, appropriate calculations, and examples to support your analysis.] D. Capital Equipment: [In one paragraph, analyze the risks and benefits of the business choosing to invest in capital equipment, including the necessary ethical considerations, appropriate calculations, and examples to support your analysis.] E. Capital Lease: [In one paragraph, analyze the risks and benefits of the business choosing to purchase a capital lease, including the necessary ethical considerations, appropriate calculations, and examples to support your analysis.] Financial Evaluation In this section of the report, you will evaluate the three available financial options for the business and recommend which option(s) are the best for the business to choose. A. Financing: [In one paragraph, explain how a business finances its operations and expansion.] B. Bond Investment: [In one paragraph, write your assessment on the appropriateness of a bond investment as an option for the business’s financial health, using your financial analysis and other financial information to support your claims.] C. Capital Equipment: [In one paragraph, write your assessment on the appropriateness of a capital equipment investment as an option for the business’s financial health, using your financial analysis and other financial information to support your claims.] D. Capital Lease: [In one paragraph, write your assessment on the appropriateness of a capital lease purchase as an investment option for the business’s financial health, using your financial analysis and other financial information to support your claims.] E. Short-Term Financing: [In one paragraph, explain how potential short-term financing sources could help the business raise needed funds for improving its financial health. Base your response on the business’s current financial information.] F. Future Financial Considerations: [In one paragraph, describe the business’s likely future financial performance based on its current financial well-being and risk level. Use financial information to support your claims.] Financial Recommendation(s) [In 1 to 2 paragraphs, recommend the most appropriate financing option(s) based on the business’s financial health, and include a rationale for why the option(s) are the best.] 3 FIN 320 Project Two Business Options List Choose one of the following businesses to use in Project Two. You will also use this business in the Module Two Journal and the Project Two Milestone. Business Options • Johnson & Johnson (JNJ) • Disney (DIS) • Facebook (FB) • Kellogg (K) • Tesla (TSLA) • Microsoft (MSFT) • American Express (AXP) FIN 320 Project Two Business Options List Business Options 10/9/21, 9:53 AM Project Two Guidelines and Rubric - FIN-320-T1991 Principles of Finance 21EW1 https://learn.snhu.edu/d2l/le/content/842676/viewContent/14795436/View 1/10 Project Two Guidelines and Rubric Competencies In this project, you will demonstrate your mastery of the following competencies: Analyze financial and investment decisions that add value to the organiza�on Analyze financing op�ons to maximize investor value Scenario You are a financial analyst for the chosen business that you selected during your Module Two Journal assignment. Your supervisor has discovered last minute that your business’s board of directors is looking for updates on the business’s financial health. Your supervisor has asked you to write a report regarding the business’s current financial health and the available financial op�ons for improving the business. You’ve also been asked to make recommenda�ons as to which op�ons the business should choose to best support its financial health. Your supervisor will then use your report to present to the business’s board of directors, whose members all have varying levels of knowledge in terms of finance. Direc�ons Using the business you chose from the Project Two Business Op�ons List, create a report for your supervisor to share with the board of directors during their presenta�on. Keep in mind that your report needs to be easy for someone unfamiliar with finance to understand, as not all of the board members for your business fully understand finance. Using Mergent Online, locate the most recent quarterly financial statements for your chosen company, and use these statements to support your analysis throughout the project. Refer to the Project Two Financial Assump�ons document located in the Suppor�ng Materials sec�on for the assump�ons you need in order to analyze the three available financial op�ons outlined in the Financial Analysis sec�on of the project direc�ons. You are encouraged to use the Project Two Financial Analyst Report template located in the What to Submit sec�on to help complete this project. Specifically, you must address the following: 1. Financial Analysis: In this sec�on of the report, you will use the most recent quarterly financial statements for your chosen business and the Project Two Financial Formulas spreadsheet (located in the What to Submit sec�on) to calculate appropriate financial formulas for assessing the business’s financial health. You will also analyze all three available financial op�ons for improving the business based on your calcula�ons and the provided Project Two Financial Assump�ons document. A. Financial Calcula�ons: Calculate accurate financial formulas to assess the business’s current financial health. Specifically, you must calculate the following: Working capital Current ra�o Debt ra�o Earnings per share Price/earnings ra�o Total asset turnover ra�o Financial leverage Net profit margin  FIN-320-T1991 Principles of Finance 21EW1 TM https://learn.snhu.edu/d2l/le/content/842676/navigateContent/1764/Previous?pId=14795407 https://learn.snhu.edu/d2l/le/content/842676/navigateContent/1764/Next?pId=14795407 https://app.readspeaker.com/cgi-bin/rsent?customerid=9568&url=https\%3A\%2F\%2Flearn.snhu.edu\%2Fcontent\%2Fenforced\%2F842676-FIN-320-T1991-OL-TRAD-UG.21EW1\%2FProject\%2520Two\%2520Guidelines\%2520and\%2520Rubric.html&lang=en_us&voice=9568&readid=d2l_read_element_1 https://learn.snhu.edu/d2l/home/842676 10/9/21, 9:53 AM Project Two Guidelines and Rubric - FIN-320-T1991 Principles of Finance 21EW1 https://learn.snhu.edu/d2l/le/content/842676/viewContent/14795436/View 2/10 Net profit margin Return on assets Return on equity B. Working Capital Management: Explain the impact of working capital management on the business’s opera�ons. Provide examples to support your claims. C. Bond Investment: Analyze the risks and benefits of the business choosing to invest in a corporate bond, including the necessary ethical considera�ons, appropriate calcula�ons, and examples to support your analysis. D. Capital Equipment: Analyze the risks and benefits of the business choosing to invest in capital equipment, including the necessary ethical considera�ons, appropriate calcula�ons, and examples to support your analysis. E. Capital Lease: Analyze the risks and benefits of the business choosing to purchase a capital lease, including the necessary ethical considera�ons, appropriate calcula�ons, and examples to support your analysis. 2. Financial Evalua�on: In this sec�on of the report, you will now determine if the three available financial op�ons in the Project Two Financial Assump�ons document are appropriate for the business, considering the analysis you did in the first sec�on. You will also explain financing and describe the businesss likely future performance. A. Financing: Explain how a business finances its opera�ons and expansion. B. Bond Investment: Assess the appropriateness of a bond investment as a financing op�on for the business’s financial health, using your financial analysis and other financial informa�on to your support claims. C. Capital Equipment: Assess the appropriateness of a capital equipment investment as a financing op�on for the business’s financial health, using your financial analysis and other financial informa�on to support your claims. D. Capital Lease: Assess the appropriateness of a capital lease purchase as a financing op�on for the business’s financial health, using your financial analysis and other financial informa�on to support your claims. E. Short-Term Financing: Explain how poten�al short-term financing sources could help the business raise needed funds for improving its financial health. Base your response on the business’s current financial informa�on. F. Future Financial Considera�ons: Describe the business’s likely future financial performance based on its current financial well-being and risk levels. Use financial informa�on to support your claims. 3. Financial Recommenda�ons: In this sec�on of the report, you will recommend which financing op�on(s) are the best for the business to choose depending on its financial health. A. Financial Recommenda�on(s): Recommend the most appropriate financing op�on(s) based on the business’s financial health, including a ra�onale for why the op�on(s) are best. What to Submit To complete this project, you must submit the following: Financial Analysis Report Submit your completed report as a 3- to 5-page Word document with 12-point Times New Roman font, double spacing, and one- inch margins. Or, you may use the provided Project Two Financial Analyst Report template if you so choose to help you complete your report. You will also need to submit the Excel files for your chosen business’s balance sheet, income statement, and cash flow statement from Mergent Online. Spreadsheet: Project Two Financial Formulas Use this Excel spreadsheet to complete your calcula�ons for the project. You should have already completed parts of the spreadsheet for your Project Two Milestone assignment. All sources, including your Project Two Financial Formulas spreadsheet, should be cited according to APA style. Suppor�ng Materials The following resources support your work on the project: Document: Project Two Financial Assump�ons Use this document to help you complete this project. Document: Project Two Business Op�ons List Use this document to select your chosen business for this project. Shapiro Library Resource: Mergent Online https://learn.snhu.edu/content/enforced/842676-FIN-320-T1991-OL-TRAD-UG.21EW1/Course\%20Documents/FIN\%20320\%20Project\%20Two\%20Financial\%20Analyst\%20Report.docx?_&d2lSessionVal=QWLBO0SGIwrbml4A03lOFtnXw&ou=842676 https://learn.snhu.edu/content/enforced/842676-FIN-320-T1991-OL-TRAD-UG.21EW1/Course\%20Documents/FIN\%20320\%20Project\%20Two\%20Financial\%20Formulas.xlsx?_&d2lSessionVal=QWLBO0SGIwrbml4A03lOFtnXw&ou=842676 https://learn.snhu.edu/content/enforced/842676-FIN-320-T1991-OL-TRAD-UG.21EW1/Course\%20Documents/FIN\%20320\%20Project\%20Two\%20Financial\%20Assumptions.pdf?_&d2lSessionVal=QWLBO0SGIwrbml4A03lOFtnXw&ou=842676 https://learn.snhu.edu/content/enforced/842676-FIN-320-T1991-OL-TRAD-UG.21EW1/Course\%20Documents/FIN\%20320\%20Project\%20Two\%20Business\%20Options\%20List.pdf?_&d2lSessionVal=QWLBO0SGIwrbml4A03lOFtnXw&ou=842676 https://libguides.snhu.edu/mergentonline 10/9/21, 9:53 AM Project Two Guidelines and Rubric - FIN-320-T1991 Principles of Finance 21EW1 https://learn.snhu.edu/d2l/le/content/842676/viewContent/14795436/View 3/10 Shapiro Library Resource: Mergent Online Use this resource to help you complete this project. Video: Mergent Online: Public Company Financials (4:46) Watch this video from the Shapiro Library to learn more about how to access and use Mergent Online. Although this video shows informa�on on the ‘As Reported Currency’ page within the Company Financials tab, for the purposes of this course, the best op�on for loca�ng financial data can be accessed by clicking on ‘Standardized’ beneath the ‘Company Financials’ tab. This will allow you to access the Standardized Annual Balance Sheet. Shapiro Library FAQ: How Do I Cite a Company Profile From Mergent Online? Use this resource to help answer any ques�ons you have about ci�ng from Mergent Online. Project Two Rubric Criteria Exemplary Proficient Needs Improvement Not Evident Value Financial Analysis: Financial Calcula�ons N/A Calculates accurate financial formulas to assess the business’s current financial health (100\%) Shows progress toward proficiency, but with errors or omissions; areas for improvement may include calcula�ng more accurate financial formulas to assess the business’s current financial health (55\%) Does not a�empt criterion (0\%) 6 Financial Analysis: Working Capital Management Exceeds proficiency in an excep�onally clear, insigh�ul, sophis�cated, or crea�ve manner (100\%) Explains the impact of working capital management on the business’s opera�ons, providing examples to support the claims (85\%) Shows progress toward proficiency, but with errors or omissions; areas for improvement may include explaining in further detail the impact of working capital management on the business’s opera�ons or the examples provided to support the claims (55\%) Does not a�empt criterion (0\%) 6 Financial Analysis: Bond Investment Exceeds proficiency in an excep�onally clear, insigh�ul, sophis�cated, or crea�ve manner (100\%) Analyzes the risks and benefits of the business choosing to invest in a bond, including the necessary ethical considera�ons, appropriate calcula�ons, and examples to support the analysis (85\%) Shows progress toward proficiency, but with errors or omissions; areas for improvement may include analyzing more comprehensively the risks and benefits of the business choosing to invest in a bond, including the necessary ethical considera�ons, appropriate Does not a�empt criterion (0\%) 8 https://libguides.snhu.edu/mergentonline https://www.youtube.com/watch?v=QWjBUz4mGQQ&feature=youtu.be https://libanswers.snhu.edu/faq/335085 10/9/21, 9:53 AM Project Two Guidelines and Rubric - FIN-320-T1991 Principles of Finance 21EW1 https://learn.snhu.edu/d2l/le/content/842676/viewContent/14795436/View 4/10 calcula�ons, and examples to support the analysis (55\%) Financial Analysis: Capital Equipment Exceeds proficiency in an excep�onally clear, insigh�ul, sophis�cated, or crea�ve manner (100\%) Analyzes the risks and benefits of the business choosing to invest in capital equipment, including the necessary ethical considera�ons, appropriate calcula�ons, and examples to support the analysis (85\%) Shows progress toward proficiency, but with errors or omissions; areas for improvement may include analyzing more comprehensively the risks and benefits of the business choosing to invest in capital equipment, including the necessary ethical considera�ons, appropriate calcula�ons, and examples to support the analysis (55\%) Does not a�empt criterion (0\%) 8 Financial Analysis: Capital Lease Exceeds proficiency in an excep�onally clear, insigh�ul, sophis�cated, or crea�ve manner (100\%) Analyzes the risks and benefits of the business choosing to purchase a capital lease, including the necessary ethical considera�ons, appropriate calcula�ons, and examples to support the analysis (85\%) Shows progress toward proficiency, but with errors or omissions; areas for improvement may include analyzing more comprehensively the risks and benefits of the business choosing to purchase a capital lease, including the necessary ethical considera�ons, appropriate calcula�ons, and examples to support the analysis (55\%) Does not a�empt criterion (0\%) 8 Financial Evalua�on: Financing Exceeds proficiency in an excep�onally clear, insigh�ul, sophis�cated, or crea�ve manner (100\%) Explains how a business finances its opera�ons and expansion (85\%) Shows progress toward proficiency, but with errors or omissions; areas for improvement may include explaining in more detail how a business finances its opera�ons and expansion (55\%) Does not a�empt criterion (0\%) 7 10/9/21, 9:53 AM Project Two Guidelines and Rubric - FIN-320-T1991 Principles of Finance 21EW1 https://learn.snhu.edu/d2l/le/content/842676/viewContent/14795436/View 5/10 Financial Evalua�on: Bond Investment Exceeds proficiency in an excep�onally clear, insigh�ul, sophis�cated, or crea�ve manner (100\%) Assesses the appropriateness of a bond investment as a financing op�on for the business’s financial health, using financial analysis and other financial informa�on to support the claims (85\%) Shows progress toward proficiency, but with errors or omissions; areas for improvement may include assessing more comprehensively the appropriateness of a bond investment as a financing op�on for the business’s financial health or be�er using financial analysis and other financial informa�on to support the claims (55\%) Does not a�empt criterion (0\%) 8 Financial Evalua�on: Capital Equipment Exceeds proficiency in an excep�onally clear, insigh�ul, sophis�cated, or crea�ve manner (100\%) Assesses the appropriateness of a capital equipment investment as a financing op�on for the business’s financial health, using financial analysis and other financial informa�on to support the claims (85\%) Shows progress toward proficiency, but with errors or omissions; areas for improvement may include assessing more comprehensively the appropriateness of a capital equipment investment as a financing op�on for the business’s financial health or be�er using financial analysis and other financial informa�on to support the claims (55\%) Does not a�empt criterion (0\%) 8 Financial Evalua�on: Capital Lease Exceeds proficiency in an excep�onally clear, insigh�ul, sophis�cated, or crea�ve manner (100\%) Assesses the appropriateness of a capital lease purchase as a financing op�on for the business’s financial health, using financial analysis and other financial informa�on to support the claims (85\%) Shows progress toward proficiency, but with errors or omissions; areas for improvement may include assessing more comprehensively the appropriateness of a capital lease purchase as a financing op�on for the business’s financial health or be�er using financial analysis and other Does not a�empt criterion (0\%) 8 10/9/21, 9:53 AM Project Two Guidelines and Rubric - FIN-320-T1991 Principles of Finance 21EW1 https://learn.snhu.edu/d2l/le/content/842676/viewContent/14795436/View 6/10 financial informa�on to support the claims (55\%) Financial Evalua�on: Short- Term Financing Exceeds proficiency in an excep�onally clear, insigh�ul, sophis�cated, or crea�ve manner (100\%) Explains how poten�al short-term financing sources could help the business raise needed funds for improving its financial health, based on the business’s current financial informa�on (85\%) Shows progress toward proficiency, but with errors or omissions; areas for improvement may include explaining in further detail how poten�al short-term financing sources could help the business raise needed funds for improving its financial health, based on the business’s current financial informa�on (55\%) Does not a�empt criterion (0\%) 7 Financial Evalua�on: Future Financial Considera�ons Exceeds proficiency in an excep�onally clear, insigh�ul, sophis�cated, or crea�ve manner (100\%) Describes the business’s likely future financial performance based on its current financial well-being and risk levels (85\%) Shows progress toward proficiency, but with errors or omissions; areas for improvement may include describing in further detail the business’s likely future financial performance based on its current financial well-being and risk levels (55\%) Does not a�empt criterion (0\%) 6 Financial Recommenda�on(s) Exceeds proficiency in an excep�onally clear, insigh�ul, sophis�cated, or crea�ve manner (100\%) Recommends the most appropriate financing op�on(s) based on the business’s financial health, including a ra�onale for why the op�on(s) are best (85\%) Shows progress toward proficiency, but with errors or omissions; areas for improvement may include recommending more comprehensively the most appropriate financing op�on(s) based on the business’s financial health, including a ra�onale for why the op�on(s) are best (55\%) Does not a�empt criterion (0\%) 7 Ar�cula�on of Exceeds proficiency Clearly conveys Shows progress Submission has 8 10/9/21, 9:53 AM Project Two Guidelines and Rubric - FIN-320-T1991 Principles of Finance 21EW1 https://learn.snhu.edu/d2l/le/content/842676/viewContent/14795436/View 7/10 Response in an excep�onally clear, insigh�ul, sophis�cated, or crea�ve manner (100\%) meaning with correct grammar, sentence structure, and spelling, demonstra�ng an understanding of audience and purpose (85\%) toward proficiency, but with errors in grammar, sentence structure, and spelling, nega�vely impac�ng readability (55\%) cri�cal errors in grammar, sentence structure, and spelling, preven�ng understanding of ideas (0\%) Cita�ons and A�ribu�ons Uses cita�ons for ideas requiring a�ribu�on, with few or no minor errors (100\%) Uses cita�ons for ideas requiring a�ribu�on, with consistent minor errors (85\%) Uses cita�ons for ideas requiring a�ribu�on, with major errors (55\%) Does not use cita�ons for ideas requiring a�ribu�on (0\%) 5 Total: 100\% 10/9/21, 9:53 AM Project Two Guidelines and Rubric - FIN-320-T1991 Principles of Finance 21EW1 https://learn.snhu.edu/d2l/le/content/842676/viewContent/14795436/View 8/10 10/9/21, 9:53 AM Project Two Guidelines and Rubric - FIN-320-T1991 Principles of Finance 21EW1 https://learn.snhu.edu/d2l/le/content/842676/viewContent/14795436/View 9/10 10/9/21, 9:53 AM Project Two Guidelines and Rubric - FIN-320-T1991 Principles of Finance 21EW1 https://learn.snhu.edu/d2l/le/content/842676/viewContent/14795436/View 10/10 Reflect in ePortfolio Download Print Open with docReader You have viewed this topic Last Visited Oct 9, 2021 3:38 PM Activity Details https://learn.snhu.edu/d2l/le/content/842676/navigateContent/1764/Previous?pId=14795407 https://learn.snhu.edu/d2l/le/content/842676/navigateContent/1764/Next?pId=14795407 javascript:void(0); FIN 320 Project Two Financial Assumptions Whenever a business needs to make an investment, the financial options associated with that investment must be carefully considered. This is true whether the business seeks to purchase something as simple as a new building or a piece of equipment, or something as complex as acquiring a new business. Business leaders need to be able to estimate cash flows from an investment and use the net present value (NPV) method to figure out if the investment is worthwhile. This document includes lists for three financial options and their associated assumptions. For your Project Two assignment, analyze all three financial options provided, then select the option or options that add the most value to the business you have selected based on all the information you’ve gathered. Your recommendation should include careful analysis of NPV calculations, financial ratios, working capital analysis, and supportive documents. Remember to evaluate each financial option in the context of the financial ratio analysis and working capital analysis to help you decide which option(s) to recommend to your chosen business in your Project Two assignment. Financial Option 1: Purchase a $10 Million Building Rationale for investment: The business is considering environmental, social, and corporate governance (ESG) factors as part of its investment into a new building for its headquarters. The building itself will be a Leadership in Energy and Environmental Design (LEED)-certified building, but the new site being considered currently houses a large, inactive gas station that sold both gasoline and diesel fuel. The new site also has a sizable repair facility left over that was used for deliveries and tractor-trailer trucks for more than 50 years. While some restoration was performed on the site prior to the new building’s construction, the previous owner ran out of funds before they were ever able to bring the site up to LEED standards. Four large fuel tanks remain on the site, and they will also need to be addressed per LEED standards. Assumptions to consider:  $10 million cash purchase  Building generates additional net profits after tax of $1.25 million per year  20 year expected useful life of building  Salvage value: $1.5 million  Discount rate is 10\% Financial Option 2: Lease of $25 Million in Equipment Rationale for investment: The business’s current equipment is efficient, but it uses a substantial amount of electricity. Operating the production line also creates significant waste material, including waste plastics. The business is looking into leasing newer, more environmentally friendly equipment that will still allow it to be at least as efficient in production as it is now. Assumptions to consider:  Annual cash flows generated with equipment: $4 million  Discount rate is 12\%  15-year useful life  No salvage value Financial Option 3: $30 Million Investment in Bonds Rationale for investment: The business that’s offering these bonds for sale contracts with another business in China to assemble computer components. The Chinese business is known to have used child labor in the past, but claims it has stopped this practice. However, the U.S. business selling these bonds has not investigated to verify whether these claims are true or not. Assumptions to consider:  10-year bond  8\% coupon  Priced at a discount: $95  Discount rate is 9\% RATIOS ACCOUNTING & FINANCIAL RATIOS CURRENT RATIO (Current Assets / Current Liabilities) TOTAL ASSET TURNOVER RATIO (Total Revenue / Total Assets) Current Assets Total Revenue Current Liabilities ERROR:#DIV/0! Total Assets ERROR:#DIV/0! WORKING CAPITAL (Current Assets - Current Liabilities) : *Note to students: Be mindful of the scale being used in Mergent Online when filling this out. If a number is written as 12.53, that does not mean the total for that item is $12.53. There could be numerous zeros written after it, depending on the scale labeled above. In this example, 12.53 is actually $12,530,000. (To delete this comment, right-click on the WORKING CAPITAL box, then select Delete Comment from the drop-down menu.) FINANCIAL LEVERAGE (Total Assets / Shareholders Equity) Current Assets Total Assets Current Liabilities 0 Shareholders Equity ERROR:#DIV/0! DEBT RATIO (Total Debt / Total Assets) NET PROFIT MARGIN (Net Income / Total Revenue) Total Debt Net Income Total Assets ERROR:#DIV/0! Total Revenue ERROR:#DIV/0! EARNINGS PER SHARE (Net Income / Weighted Average Common Shares Outstanding) RETURN ON ASSETS (Net Income / Total Assets) Net Income Net Income Shares Outstanding ERROR:#DIV/0! Total Assets ERROR:#DIV/0! PRICE EARNINGS RATIO (Share Price (end of quarter / EPS) RETURN ON EQUITY (Net Income - Preferred Dividends / Shareholders Equity) Stock Price NI - Pref. Div. EPS ERROR:#DIV/0! Shareholders Equity ERROR:#DIV/0! Monthly Time Value of Money - Monthly Compounding Rate of Return Year 1 Initial Investment Month 1 2 3 4 5 6 7 8 9 10 11 12 Interest $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Investment Value $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Year 2 Month 1 2 3 4 5 6 7 8 9 10 11 12 Interest $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Investment Value $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Year 3 Month 1 2 3 4 5 6 7 8 9 10 11 12 Interest $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Investment Value $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Year 4 Month 1 2 3 4 5 6 7 8 9 10 11 12 Interest $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Investment Value $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Year 5 Month 1 2 3 4 5 6 7 8 9 10 11 12 Interest $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Investment Value $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Year 6 Month 1 2 3 4 5 6 7 8 9 10 11 12 Interest $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Investment Value $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Year 7 Month 1 2 3 4 5 6 7 8 9 10 11 12 Interest $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Investment Value $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Year 8 Month 1 2 3 4 5 6 7 8 9 10 11 12 Interest $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Investment Value $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Year 9 Month 1 2 3 4 5 6 7 8 9 10 11 12 Interest $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Investment Value $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Year 10 Month 1 2 3 4 5 6 7 8 9 10 11 12 Interest $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Investment Value $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Annual Time Value of Money - Annual Compounding Rate of Return Year 1 2 3 4 5 6 7 8 9 10 Initial Investment Interest $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Investment Value $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 PV Time Value of Money - Present Value Annuity Number of Years Rate of Return $0.00 Payment FV Time Value of Money - Future Value Annuity Number of Years Rate of Return $0.00 Payment PV - Lump Sum Time Value of Money - Present Value of Lump Sum Rate Years $0.00 Initial Investment FV - Lump Sum Time Value of Money - Future Value of Lump Sum Rate Years $0.00 Initial Investment NPV Net Present Value (NPV) Calculator Building Initial Investment Year 1 2 3 4 5 6 7 8 9 10 Annual Cash Inflows Cash Flows $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Discount Rate NPV = $0 Year 11 12 13 14 15 16 17 18 19 20 Number of Years Cash Flows $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Salvage Value Equipment Initial Investment Year 1 2 3 4 5 6 7 8 9 10 Annual Cash Inflows Cash Flows $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Discount Rate NPV = $0 Year 11 12 13 14 15 16 17 18 19 20 Number of Years Cash Flows $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Salvage Value Bonds Initial Investment Annual Cash Inflows Discount Rate NPV = $0 Year 1 2 3 4 5 6 7 8 9 10 Number of Years Cash Flows $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Principal Returned