Case Study£ºmacmillan and Grunski Consulting
Introductory Overview
The group project, Macmillan and Grunski Consulting, consists of two sections. The first part explains the case about discounted cash flow analysis, by answering the given nine questions. The second part discusses the retirement planning.
Case Study
Sandra Macmillan, one of the founders of Macmillan and Grunski Consulting which provides financial planning services, is now giving a short project to Mary Somkin, the firm¡¯s top secretary. If she can successfully demonstrate her ability and skill of discounted cash flow (DCF) analysis, one of the most important concepts in financial planning, she can expand her role in the firm and broaden her job opportunity.
The project was an actual analysis for Sandra¡¯s current client. The client wants to invest their asset with a goal of achieving enough money to pay for their daughter¡¯s college tuition. There are several options that should be financially analyzed in order to give optimal proposals to the client, considering their other considerations, such as home improvement, borrowing fund, or school selection. The following parts describe the details of financial analysis to get well grounded proposals. In conclusion, some key points, which can be generally applied to all DCF analysis, are extracted and pointed out by answering the given nine questions.
Retirement Planning (Value added materials)
In addition to the case study, the second part of this project discusses about retirement planning, taking the findings of the case study into consideration. The discussion includes the importance of planning after retirement at early stage of our life. Also five guidelines for good retirement plan are addressed at the end.
CASE STUDY SOLUTION
Question 1: Choosing a Discount Rate on debt securities.
Given a discount rate i%, it is straightforward to convert a stream of cash flows into a present value, a FV (FV), or an annuity. For example, the present value of a sum of
The group project, Macmillan and Grunski Consulting, consists of two sections. The first part explains the case about discounted cash flow analysis, by answering the given nine questions. The second part discusses the retirement planning.
Case Study
Sandra Macmillan, one of the founders of Macmillan and Grunski Consulting which provides financial planning services, is now giving a short project to Mary Somkin, the firm¡¯s top secretary. If she can successfully demonstrate her ability and skill of discounted cash flow (DCF) analysis, one of the most important concepts in financial planning, she can expand her role in the firm and broaden her job opportunity.
The project was an actual analysis for Sandra¡¯s current client. The client wants to invest their asset with a goal of achieving enough money to pay for their daughter¡¯s college tuition. There are several options that should be financially analyzed in order to give optimal proposals to the client, considering their other considerations, such as home improvement, borrowing fund, or school selection. The following parts describe the details of financial analysis to get well grounded proposals. In conclusion, some key points, which can be generally applied to all DCF analysis, are extracted and pointed out by answering the given nine questions.
Retirement Planning (Value added materials)
In addition to the case study, the second part of this project discusses about retirement planning, taking the findings of the case study into consideration. The discussion includes the importance of planning after retirement at early stage of our life. Also five guidelines for good retirement plan are addressed at the end.
CASE STUDY SOLUTION
Question 1: Choosing a Discount Rate on debt securities.
Given a discount rate i%, it is straightforward to convert a stream of cash flows into a present value, a FV (FV), or an annuity. For example, the present value of a sum of