Investment Recommendation and Bond or Note Valuation Speech Presentation

Investment Recommendation and Bond Note Valuation - Speech or Presentation role modelAll investing alternatives apart from investment 5 have a positive net present value. This means that they are viable options for investment. However investment alternative has more attractive benefits in form of large amount of return for the five years at a minimal risk multiform with an expectation of huge savings to be made for fifteen years.The owner of the supplier firm has indicated that he would be willing to sell his business for $500,000. I expect this vertical integration of the company to result in reduced material costs totaling $75,000 every year for the next 15 years. I do not expect these savings to continue after 15 years.The cost of the low-emission (replacement) equipment is $50,000 for each of the companys two existing production lines, totaling $100,000 if the company installed the equipment in twain production lines. While the company must comply with certain EPA regulation s limiting release of certain pollutants into the atmosphere, based on relevant emission measurements made by the company, those regulations do not presently require the company to install the new equipment. There do not appear to be additional revenue or cost savings that the new equipment will generate.A land broker has indicated that she expects future economic bustment in the community where the land is located to hint to substantial appreciation in the lands value over the next decade. The cost of the land is $200,000. While management does not expect to develop the land for use in the companys operations, I estimate the value of the land will appreciate by approximately 11.25 part annually during the next five years to $341,000.The largest bank serving the companys local business community is currently offering an interest rate of 5.5 percent on three-year CDs. The bank pays interest on its CDs to depositors annually. The companys investment policy limits deposits in any in dividual bank to a maximum of