Assignment IE 5304-005

Assignment
IE 5304-005
Fall 2022
Due Date: 22/11/2022
Report Due at the beginning of class, Nov. 22nd
As described in the course syllabus, this is the “key assignment” project involving data collection & analysis
that should be fun and enable you to use your knowledge from class for practical application. The project
should improve your grade since it will count as 15% of the course grade. But as a reminder, since the project
is a key assignment as defined by the College of Engineering, you must successfully complete it in order to
avoid an incomplete (X) in the class.
Assume that you borrowed $100,000 from a bank for five years at 5.2% interest rate, to be paid in full with the
accumulated interest at the end of the five years. Also, assume that the entire initial capital (borrowed amount)
is to be used for the purchase of stock.
1. Study 5 different companies and their common stock. Companies that the stock are the best and that
have the same amount of risk.
2. Provide brief literature and historical review of their stock. Forecast price for the next 5 years.
3. From your analysis determine single stock in which to invest.
4. Assume after the initial purchase of stock, you are not allowed to sell and buy during the investment
period. Also assume your MARR.
5. Each project must be neatly typed and include a cover sheet that at a minimum contains your name and
the project assignment.
6. The report should be ‘standalone’ so that anyone reading the report will know what it covers from the
beginning.
7. Your report should include a concise and clear definition of all events in your project on a year by year
basis over 5 years. One paragraph per year should be sufficient to provide this information.
8. You should include a short bibliography with references (including the textbook). Websites are OK as
references, but identify the information you received from the URL. You should also list and briefly
describe assumptions you have made for interest rates.
9. Use MS Excel for financial data organization, year by year and of course, for the computations. After
all the data has been entered, you will need to compute the net present value (NPV) for your plan and
discuss what conclusion(s) you have reached as a result of the project. The money you earn from your
planned investments will be treated as your expected gross revenues (G).
10. Provide a spreadsheet analysis for the loan and investment.