Assignment Guidelines:
For this assignment, you will evaluate a company’s financial health using key business ratios and apply the Time Value of Money (TVM) concept to assess a potential investment.
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Select a Company: Choose a publicly traded company and obtain its most recent annual report with financial statements.
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Business Ratio Analysis:
· Calculate the following ratios: Current Ratio, Profit Margin, Return on Assets (ROA), and Debt-to-Equity Ratio.
· Explain each ratio, its importance, and what it reveals about the company’s financial health.
· Summarize your findings, identifying any strengths and areas of concern based on the ratios.
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Time Value of Money (TVM) Application:
· Assume the company is considering an investment projected to generate $50,000 annually over five years.
· Using a discount rate of 6%, calculate the present value of this investment.
· Evaluate whether this investment is financially viable based on the calculated present value and provide your recommendation.
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Report Findings
Submission Requirements:
· Write a 3 page report that includes your ratio calculations, explanations, TVM calculations, and investment recommendation, along with any insights on the company’s financial health.
· Submit your report in APA format, use APA 7th edition for in-text citations and references, and include a reference page for any sources used.
