Charlie has $ 14,000 to invest for a period of 5 years. The following three alternatives are available to him: • Account 1 pays 2.00% for year 1, 5.00% for year 2, 8.00% for year 3, 11.00% for year 4, and 12.00% for year 5, all with annual compounding. • Account 2 pays 12.00% for year 1, 11.00% for year 2, 8.00% for year 3, 5.00% for year 4, and 2.00% for year 5, all with annual compounding. • Account 3 pays interest at the rate of 7.53524% per year for all 5 years. Based on the available balance at the end of year 5, which alternative is Charlie's best choice? Year 5 Balance, Alternative 1: $ Year 5 Balance, Alternative 2: $ Year 5 Balance, Alternative 3: $

Q: ontal and vertical analysis. Which type of analysis did you do?

A: In selecting the company for investment it is quite necessary to develop the financial statment and…

Q: Define each of the following terms: g. Decision tree; staged decision tree; decision node; branch

A: Decision tree: A decision tree is a method of arranging a set of consecutive decisions, which is…

Q: Important Factors to Consider When Building a TCO Model Example of a TCO Model?

A: TCO model or Total Cost Ownership Model is an model used to estimate the cost of product or a…

Q: can you show this in excel with the necessary formulas?

A: Trial balance is a worksheet/list of ledger accounts which are sorted into debit and credit…

Q: How to choose a Benchmark?

A: Investors select a market index (or a mix of indices) as the portfolio's benchmark. An index…

Q: Explain materiality , happens and why these are important? Explain with the help of example.

A: Materiality refers to the concept of determining whether a particular item, transaction, or…

Q: Illustrates how you may obtain the true IRR by using the Goal Seek function?

A: IRR refers to the rate of return at which the net present value of a project is zero. This is the…

Q: Define the term predictive value.

A: Predictive value refers to the fact that quality financial information can be used to base…

Q: Explain about the Black–Scholes model.

A: Black Scholes option pricing model is probably the most commonly used option pricing model in…

Q: How do you explain or interpret predictive model information?

A: Meaning- Predictive Model As the name suggest, where with the help of historical figures or even…

Q: Where does the information on step one comes from?

A: The excess of an asset's expected investment return above the risk-free rate of return is known as…

Q: By chance, do you have the formulas that you used for each answer so i can study it more?

A: Formulae used:

Q: Explain the PSA prepayment model?

A: What Is a Prepayment Model? In lending, a prepayment model is used to estimate the level of…

Q: What is the actual formula used to get this answer?

A: Present value of annuity Annuity is a series of equal payments at equal interval over a specified…

Q: What are ESOPs? What are some of their advantages anddisadvantages?

A: ESOP: Employee stock ownership plan is retirement plans for employees of the company wherein the…

Q: Draw a figure to explain Elements of required return - establishing a MARR?

A: The figure is represented as below: Note: Values assumed

Q: Explain subsequent events and why these are important? Explain with the help of example.

A: Subsequent events refer to events or transactions that occur after the balance sheet date but before…

Q: What are the assumptions of Walter’s model?

A: The Walter Model of Careers is an influential theory in the field of career development. This model…

Q: Looking at the changes, what conclusions can you draw from th

A: Introduction:- According to vertical analysis, balance sheet shows all items in the balance sheet…

Q: What is forward points?

A: Forward points are nothing but basis points added or subtracted from the spot rate of an underlying…

Q: Explains the difference if we prioritize Information Systems (A) first.

A: Prioritizing Information Systems (A) first within an organization represents a strategic approach…