The assignment describes Business Investment Concepts. Besides, there is a description of Impact of Payment Method on Insurance. So, calculate the sinking fund payment required for the fence post.

Business Investment Concepts – Impact of Payment Method on Insurance

Firstly, business Investments module focuses on business investment concepts. Secondly, understanding how compound interest works will help you get the biggest return on your investment. Thirdly, one way of looking at the investment is to calculate the future value of your money. At the end of a given number of years from an initial lump sum investment at a given interest rate. Also, another way to say you want a certain amount by a given time. Perhaps at some point in the future when you know, you will want to expand your business. What lump sum present value and the interest rate would you need to get your desired amount?

Business Investment Concepts – Impact of Payment Method on Insurance

In this Assessment, you will use the skills you learned in this module to investigate making large purchases for your business. For this Assessment, you will write an essay to address the requirements described below. Your essay must carefully planned and written using well-constructed sentences and paragraphs. Make sure that your grammar and spelling are correct. Points will be awarded for content as well as composition. Your essay must be a minimum of 1 page in length with standard 1-inch margins and is required to have at least one reference from a reliable source.

Business Investment Concepts – Impact of Payment Method on Insurance

To evaluate which option will benefit the business most, you must evaluate both annuity options by calculating the future value of each option and explain how the investment will help you to carry out your goals. Purchase 2: After careful review of your maintenance log, you also realized that you will need to replace a fence post molding machine that sells for $45,000.00. You estimate that you will need to purchase a new machine in 3 years as this machine reaches the end of its useful life. You plan to save for this purchase using a sinking fund that compounds semi-annually and earns a 12% annual rate. Your essay should in include the following information Calculate the future value of both the ordinary annuity and the annuity due options being offered by your insurance company.

Business Investment Concepts – Impact of Payment Method on Insurance

Explain the differences between these two investment options. Select the best annuity option for your business and explain why that option is preferable. Calculate the sinking fund payment required for the fence post molding machine. Compare and contrast the shorter timeframe and higher interest rate of the sinking fund with the longer-term warehouse annuity option you chose. Be sure to calculate and report how much interest you will earn from the annuity chosen for the warehouse and the amount of the sinking fund investment. Develop a plan to prioritize these two purchases, and discuss the potential impact that these will have on the future of your business.

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