Inflation Is Important Consideration In Financial Planning 2533256
Ian received an undergraduate degree in finance four years ago and has been employed all this time at a mid-size wealth management company. His initial salary was $65,000 per year and increased 4.0% every year. Ian decided that his four-year stint at this employer has prepared him well for an MBA degree. He applied to several schools and was accepted by one of the top-10 programs in the county. Ian notified his manager about his decision yesterday, but today the manager made him the following offer: Ian will be assigned to lead a very important project with immediate salary increase of 10%. The manager assured him that for the following four years his annual raise will be at least 5%. Ian is planning to make his decision (quit and go to school or stay and lead the project) based on the present value of future earnings in the next 20 years (ignore taxes). He plans to stop working in exactly 20 years regardless of his decision and become a gentleman farmer. Document Preview:
MGT160 Individual Data Case 2: 50 points Complete your work in Excel and submit to Canvas by due date/time. Clearly mark (highlight) your answers Section I. 15 points (Excel TAB1) Expected inflation is important consideration in financial planning and the valuation process. 1. Based on 10-year Treasury rates, report expected inflation for a. November 1, 2016 (before election) b. December 1, 2016 (after election) 2. Generate a graph of expected inflation starting on January 4, 2016 to present There are two ways to get the data from FRED: a) Directly from Excel – download and install Excel Add-in using this link (you need to provide you e-mail and pick appropriate Excel version): https://research.stlouisfed.org/fred-addin/ b) Download data from FRED website: https://fred.stlouisfed.org/ Enter data codes (provided below) into Search Data codes: 10-Year Treasury Constant Maturity Rate: DGS10 10-Year Treasury Inflation-Indexed Security, Constant Maturity: DFII10 Section II. 35 points (Excel TAB2) Ian received an undergraduate degree in finance four years ago and has been employed all this time at a mid-size wealth management company. His initial salary was $65,000 per year and increased 4.0% every year. Ian decided that his four-year stint at this employer has prepared him well for an MBA degree. He applied to several schools and was accepted by one of the top-10 programs in the county. Ian notified his manager about his decision yesterday, but today the manager made him the following offer: Ian will be assigned to lead a very important project with immediate salary increase of 10%. The manager assured him that for the following four years his annual raise will be at least 5%. Ian is planning to make his decision (quit and go to school or stay and lead the project) based on the present value of future earnings in the next 20 years (ignore taxes). He plans to stop working in exactly 20 years regardless of his…
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Data-case-2.pdf
Lecture-4-in-….xlsx
