Time value of money is a very powerful concept, especially when considering the difference between present value and future value. For example, one of the wisest investment decisions is to invest money in a way that compounds its value over time. Compound interest is paid on both the principal amount (i.e., the amount of money you put in) and also on any interest you previously earned (i.e., the “interest on interest”). When your interest earns interest, the phrase “your money makes money for you” becomes true. Financial managers not only need to understand these concepts, but must also be able to communicate them clearly to help leadership teams to make better, more informed decisions.To prepare for this Discussion:Consider the following scenario: You are a financial manager, and you want to help your client understand the idea that the money they invest will make more money for them in the future. How can you show your client the benefit of investing their money?Review this week’s Learning Resources.Review the Academic Writing Expectations for 2000/3000-Level Courses, provided in this week’s Learning Resources.By Day 3Post a 150- to 225-word (2- to 3-paragraph) explanation of time value of money related to your client’s investments. To support your explanation, do the following:Describe the concepts of present value, future value, and annuities to demonstrate to your client the benefits of investing.As part of your response, perform the following calculation: Take $10,000 of (fictitious) purchased stock, choose an interest rate, and calculate the amount of money that your client would have after 60 years if the interest is compounded annually. What would the $10,000 yield in the future?To support your response, be sure to reference at least one properly cited scholarly source.

Scenario: Apix Printing, Inc.Apix Printing, Inc. is a private, domestic United States printer of periodicals, newspaper inserts, and advertising materials that accompany distributions of Sunday and weekday circulations of large metropolitan newspapers. The company, headed by chief executive officer (CEO) John Matthews, generates $450 million in revenues from three product lines (periodicals, inserts, and advertising) and has long-term contracts with several large U.S. retailers to produce weekly sales flyer inserts as well as metropolitan newspapers to produce Sunday magazine inserts and coupons. Its printing presses are characterized by offset print technology and are capable of high-capacity output; in addition, the company recently migrated to water-soluble inks, which considerably reduces manufacturing emissions.The company’s executive team, employees, and above all, its vice president (VP) of Production, Luke Stewart, are committed to environmentally-sustainable manufacturing practices. Presently, the only substrate Apix uses is paper, specifically newsprint of various weights. Trim and waste are recycled in accordance with the company’s sustainability commitment. Manufacturing divisions are geographically aligned with customers’ locations to minimize logistics costs and response time to customer requirements; however, a centralized corporate entity administers functions such as human resources, information technology, and financial reporting. The VP of sales and administration, James Simeon, oversees administration and quality compliance among the various divisions. There are presently five manufacturing divisions: Northwest, Southwest, Northeast, Southeast, and Midwest.Currently, Apix is only marginally profitable, and as such, the chief financial officer (CFO), Mary Francis, has indicated that external financing will be required to support a company expansion into a new segment of the printing sector: food packaging. This endeavor will require new investments in equipment as well as substrate inventory; promotional costs will also increase. In addition, Timothy Russell, the new Audit Committee Chair, has pointed out that the company’s compliance with the requirements of the Sarbanes-Oxley Act (SOX) will also cause administrative costs to increase. Following the requirements is paramount to successfully file a registration statement and to issue equity to shareholders in an initial public offering (IPO).As the newly hired VP of finance, you report to the CFO. In this capacity, your responsibilities include preparation of financial statements, comparative analysis and benchmarking to sector performance, and the assessment of new business investment opportunities to grow Apix’s expansion endeavors in a challenging market.Between 10-15 slides with 150-200 words in the notes pageRespond to the following scenario with your thoughts, ideas, and comments. Be substantive and clear, and use research to reinforce your ideas.Mary Francis comes into your office later that morning.“Good news! I think we’ve got strong potential investors!” Mary announces.“That’s great!” you reply.“And now, they are asking for financial information” Mary states.“Ok, I could provide a 50-page analysis for them!” you say.“That’s exactly what they don’t want. I’m beginning to notice that some of the investors don’t have a strong finance background, and the last thing we want to do is scare them off with too many financial figures” Mary explains. I would like for you to complete a presentation. However, I want you to keep it simple and clear. Using all 3 Financial Statements, please provide an analysis on Apix’s assets, liabilities, cash, and profit. As well, choose 2 additional components on each of the sheets, and provide your initial impression on the company financial situation. Do you think you could handle this?”“Of course! I’ll get started on this right away.”Mary also indicates that she would like between 10–15 slides with 150–200 words in the notes page.