When the genesis and sensible essential teams held their

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When the Genesis and Sensible Essential teams held their weekly meeting, the time value of money and its applicability yielded an extremely stimulating discussion. However, most of the team members from Genesis were very perplexed. Sensible Essentials decided the most expedient way to demonstrate how interest rates as well as time impact the value of money was to use examples. You have been asked to prepare a report analyzing your findings of the three example calculations listed below.

In this assignment, you will do the following:

    Calculate the future value of $100,000 ten years from now based on the following annual interest rates:
        2%
        5%
        8%
        10%

    Calculate the present value of a stream of cash flows based on a discount rate of 8%. Annual cash flow is as follows:
        Year 1 = $100,000
        Year 2 = $150,000
        Year 3 = $200,000
        Year 4 = $200,000
        Year 5 = $150,000
        Years 6-10 = $100,000

    Calculate the present value of the cash flow stream in problem 2 with the following interest rates:
        Year 1 = 8%
        Year 2 = 6%
        Year 3 = 10%
        Year 4 = 4%
        Year 5 = 6%
        Years 6-10 = 4

Perform your calculations in an Excel spreadsheet. Copy the calculations in a Word document. In addition, write a 2- to 3-page executive summary in Word format. Your summary should reflect a proper analysis of your findings, including a comparison and contrast of data. Apply APA standards to citation of sources. Use the following file naming convention

Reference no: EM13388311

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