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Business Analytics Capstone.edited

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Business Analytics Capstone
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Business Analytics Capstone
The four corners case problem aims to establish the investment worth of Tom in 10 or 20
years. Tom earns $85000 per year, where his portfolio has accumulated to $5000 through
retirement contribution and receipt from inheritance. Tom is currently at age 40 and aims to work
for two years until he is 60. Tom hopes to accumulate his portfolio from the current value to
$1000000 in two years. The case problem aims to establish whether this is possible. Tom has
made different assumptions in his investment contribution and growth rate. Tom assumes a 5%
salary growth rate annually to increase his contribution to the portfolio to 6%. Using the Excel
goal seek data tool in Excel, the paper establishes the investment rate, simulation for the
financial plan, makes recommendations, and discusses how the model can be used in different
company employees.
The goal seek in Excel is a robust what-if analysis that helps simulate the outcomes of
Tom to the desired outcome of his portfolio (Jeevan, 2020). The tool will help answer the
investment rate Tom requires for an investment portfolio of $772722. The four corners Excel
document contains the data for five years with the beginning balance of $50,000 and the
expected ending balance of $772722 in 20 years. The final column shows Tom's age, where Tom
will be 41 years in year one. In order to carry out the simulation, select the Excel tab Data>What
if Analysis> Goal Seek. Then add the set cell, which is the target cell, To the value, which is the
desired output of $772722, and change the variable cell or the cell to change. The simulation
results in Excel are as follows.

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1 Business Analytics Capstone Student’s Name Institutional Affiliation. Course Name Instructor’s Name Date 2 Business Analytics Capstone The four corners case problem aims to establish the investment worth of Tom in 10 or 20 years. Tom earns $85000 per year, where his portfolio has accumulated to $5000 through retirement contribution and receipt from inheritance. Tom is currently at age 40 and aims to work for two years until he is 60. Tom hopes to accumulate his portfolio from the current value to $1000000 in two years. The case problem aims to establish whether this is possible. Tom has made different assumptions in his investment contribution and growth rate. Tom assumes a 5% salary growth rate annually to increase his contribution to the portfolio to 6%. Using the Excel goal seek data tool in Excel, the paper establishes the investment rate, simulation for the financial plan, makes recommendations, and discusses how the model can be used in different company employees. The goal seek in Excel is a robust what-if analysis that helps simulate the outcomes of Tom to the desired outcome of his portfolio (Jeevan, 2020). The tool will help answer the investment rate Tom requires for an investment portfolio of $772722. The four corners Excel document contains the data for five years with the beginning balance of $50,000 and the expected ending balance of $772722 in 20 years. The final column shows Tom's age, where Tom will be 41 years in year one. In order to carry out t ...
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