Business Investment Analysis 2022

Running head: BUSINESS INVESTMENT
Business Investment
Name of the Student:
Name of the University:
Author’s Note:

BUSINESS INVESTMENT1
Business Investment
The financial analysis has been well carried out for the Vinyl Fencing Company in which
the financial aspects of the company has been well covered. As an owner of the company the
company is well aiming to make plans for large plans of purchases that would be done in the
next three to five years of time period for well achieving the goals of the business.
Future Value of Annuity
Ordinary Annuity: The future value of the annuity has been well calculated for each of the
presented two options. The first option involves saving via the ordinary annuity in which if a
savings of $2500 is invested into a quarterly basis, using a 8% interest rate and the future value
for the sum would be around $60,743.42 for the annuity investment that would be done.
Annuity Due: If the quarterly savings of $2500 is invested into the investment fund with the
help of the annuity due approach then the fund on an approximately be generating around
$61,958.29 which is slightly higher than the ordinary annuity and in turn would be providing a
higher value of investment return for the owner.
Sinking Fund Payment:
In order to well purchase the machinery which is of worth $45,000 needs to save around $6,451
on a semi-annual basis and invest the same into the account that would be generating a return of
12% compounded on a semi-annual basis.