See the problem below. Please make sure to add all

Please make sure to add all the formulas and answer each part in problem#1 and develop the tee with their decision and chance nodes for problem#2.

How much will an employee’s portfolio be worth after working for the company 30 years more? The Human Resource department at EcoCarnifex Corporation was asked to develop a financial planning model that would help employees address this question. Frank Joseph was asked to lead this effort, and he has decided to begin developing a financial plan for himself first. Frank has a degree in business and at the age of 30 in 2017. At the beginning of 2017, he is making the annual salary $35,000 and has accumulated a portfolio valued at $15,000.

Frank made the following assumptions:

a) 5% annual salary growth at the end of each year is reasonable.

b) He plans to contribute 5% of his monthly salary throughout each year.

c) 10% annual portfolio growth seems reasonable.

(1) Develop an Excel worksheet that calculates and shows the value at the end of each year of Frank’s portfolio after he will work for the company 35 years more (i.e., at the end of 2051).

(2) If Frank plans to work for the company 30 years more instead and hopes to accumulate a portfolio valued at $1,000,000 for his retirement by the end of 2046. Can he, do it? Why or why not. Please explain in detail. If not, what he should do?

Frank has presented his findings based upon the above assumptions to his boss, but his boss does not agree with it. Instead, his boss made the following assumptions.

a) The annual salary growth should not be constant. It should vary from 0 to 8% following a uniform probability distribution.

b) The annual portfolio growth rate should be approximated by anormal probability distribution with a mean of 8% and a standard deviation of 5%.

(3) Develop an Excel worksheet with this new information and then use @Risk to perform this simulation (using 1000 iterations) that calculates and shows the value at the end of each year of Frank’s portfolio after he will work for the company 35 years more (i.e., at the end of 2051).

(4) Based on (3), can Frank accumulate a portfolio valued at$1,000,000 for his retirement by the end of 2046? Why or why not. Please explain in detail.

(5) Attach the simulation graph result at the end of 35 years more as an output.

(6) Based upon the graph result, what is the probability that Frank will have at least $1,000,000 of his portfolio value for his retirement at the end of 2051?

Note that Part 1 and Part 3 solutions must be separated.

Share This Post

Email
WhatsApp
Facebook
Twitter
LinkedIn
Pinterest
Reddit

Order a Similar Paper and get 15% Discount on your First Order

Related Questions

State the Implications – Premium Paper Help

Premium Paper Help is a professional writing service that provides original papers. Our products include academic papers of varying complexity and other personalized services, along with research materials for assistance purposes only. All the materials from our website should be used with proper references.

Instructions: Space Planning • Select a style and theme for

Instructions: Space Planning • Select a style and theme for your space – Contemporary, Modern, Traditional, Transitional, French Country, Spanish, English etc.and then create a furniture plan for this master bedroom • Furniture must include but not limited to: King bed, dresser, 2 nightstands • Floor plans can be made

Our discussion question is as follows: Chapter 20: Inferential Analysis

  Our discussion question is as follows: Chapter 20: Inferential Analysis & Chapter 21: Analyzing qualitative data  What type of analysis you are conducting in your research studies? What are the advantages and disadvantages of both inferential analysis and qualitative analysis?  Feel free review the recorded PowerPoint Presentation Summary (see

Many consider Kurt Lewin’s ‘changing in three steps’ (unfreezing, changing,

Many consider Kurt Lewin’s ‘changing in three steps’ (unfreezing, changing, and refreezing) to be the classic or fundamental method to change management. Scholars have criticized Lewin for oversimplifying the change process, while others have defended him against such accusations. The model’s foundational significance, on the other hand, has remained uncontested.

We have learned from “The Path to Information Value” that

We have learned from “The Path to Information Value” that 70% (seventy percent) of managers and executives say data are “extremely important” for creating competitive advantage. In addition, it is implied by the authors that, “The key, of course, is knowing which data matter, who within a company needs them,

Use the building blocks PowerPoint to follow the direction in

Use the building blocks PowerPoint to follow the direction in performing that on the 6 given articles Please us APA formatting and DO NOT PLAGIARIZE. The rubric ,example, will be provided in attachments to help guide you. Please cite your references -take your content and put it in “lego” format.

YACHTING INDUSTRY § Specifications and grading criteria for the Final

  YACHTING INDUSTRY §   Specifications and grading criteria for the Final Assessment:  §  Customer Experience Journey analysis of yacht charter client. §  Map out and analyze the journey of a customer chartering a yacht. Please use the tools and formats introduced in the sessions of Mrs. Hammond-Smith, discussing the yacht charter market, and

Explain how the unitary-transformative theoretical approaches impact grand theories and

Explain how the unitary-transformative theoretical approaches impact grand theories and the metaparadigm in nursing Students must include the following criteria for each individual activity: 1. One initial posting by Thursday at 11:59 PM/EST. Include one scholarly peer-reviewed reference for the initial posting. 2 points The initial posting is substantive demonstrating

Visit the Choose Your Business Structure (Links to an external

Visit the Choose Your Business Structure (Links to an external site.) section of the U.S. Small Business Administration’s website. If you were to start your own business, which business entity structure would you choose? Justify why your chosen structure is the best organizational form. Explain the following business structures: sole proprietorship,

In response to your Sheena and John posts, share any

  In response to your Sheena and John posts, share any preconceived notions you may have about their topic. Lastly, consider how further exploration of the viewpoints around their topic would potentially change the lens through which they currently view the event. Sheena post I do not think this statement

Instructions This week, you will focus on a topic of

  Instructions This week, you will focus on a topic of your choice and include a problem statement, theory or conceptual framework, and the annotated bibliography from your previous work. This is a draft to get feedback from your professor to complete the Signature Assignment. The problem statement is between

Taking as guiding questions based on the objectives of the

   Taking as guiding questions based on the objectives of the module, carry out a paper taking as reference these objective questions: Do a search and investigate about: 1. Explain that you understand human rights 2. Highlight the concept of human rights and why they are important to business. 3.

Homeless Female Veterans

Theme 5: “If your innovation is successful, how will the world be a better place? What specific outcomes/improvements will your solution create?” Program Tools: Logic and Program Models 2 Theme 7: “What kind of evidence supports your innovation? What additional evidence would you like to gather in the coming year?”

Write on the visit along with reflections on what they

Write on the visit along with reflections on what they experienced and what they saw. It should be in a Word Format along with embedded or linked digital photos (or possibly videos) of some representative samples of the art. (NOTE: It is possible that some museums or galleries do not

Research and respond to the following 5 U.S. Supreme Court questions. Use academically appropriate websites for your research, and cite your sources. Each

Research and respond to the following 5 U.S. Supreme Court questions. Use academically appropriate websites for your research, and cite your sources. Each response should include at least 50 words, and you are encouraged to incorporate this week’s vocabulary terms into your responses.   1. How was the Supreme Court formed? 2. What powers are granted to

NB-Post your response to one other student’s post which has

NB-Post your response to one other student’s post which has not received a response by Mar 26 EOD. Include: discussion of your agreement or disagreement with the selected initial discussion author’s key discussion points information and evidence with citation and reference supporting your agreement/disagreement identification of any key points that