Deliverable Length: 500 words +citations+references
The time value of money is the foundation of for all of finance. Each transaction has a cost associated with it. Take a look at today’s interest rates at: http://www.treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=yield.
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Imagine a company is planning on building another facility to make garments. This company will need to spend at least $1,000,000.00 to build the plant. The company has decided to take a loan to pay for the plant. The company has the choice of starting construction today or in six months. Looking at today’s interest rates, compare them to rates of 6 months ago. In your opinion, should the company begin construction today or 6 months from now? Also, explain your answer to each of the following questions:
•How does the shape of the Treasury yield curve help to predict future economic activity?
•Based on the current Treasury interest rates, do you believe that these rates will increase or decrease within the next six months? Why?
•Why is the time value of money important to the company when borrowing money?
•If the company chooses to wait six-months, what does that indicate about the company’s view on the time value of money?
•What are the risks involved in waiting six months?
Deliverable Length: 700 words
Using the following website, http://www.treasurydirect.gov/BC/SBCPrice calculate the price of the following savings bonds in the each of the following denominational amounts: EE bond, I bond, E bond and savings note ($50, $100, $500 and $5000), and construct a table showing your answers. In addition, answer the following questions:
•Discuss each type of savings bonds in terms of risk, payout, and growth.
•Discuss which bond receives the potential best coupon rate. Why is this the case?
•Given TVM concept, which bond would you invest in?
•Based on your answer from the previous question, what does that say about your perspective on the time value of money?
•Describe the advantages and disadvantages of investing in a savings bond.
•Describe the disadvantages of investing in a savings bond.
•What is the opportunity cost of investing or not investing in a savings bond?
Deliverable Length: 400 words
The line managers in the production department have heard a lot of good things about value chain management. They heard that you have done considerable research on this topic. They have come to your office today to discuss value chain management with you.
•Summarize 3 examples of how value chain helps companies become more competitive. You are presenting these to the administrative team from the production department.
•Discuss how value chain helps companies create and build value for their clients and partnering organizations by answering the following questions: ◦How do you believe value chain management works?
◦How do you think value chain management can help companies be more competitive?
◦How do you think value chain management helps companies create and build value?
◦Include an introduction and a conclusion in addition to the 3 paragraphs.
◦Be sure to include your references, and format your submission in APA format.
Deliverable Length: Business memo of 1,000 words
You are a new member of the operations team of a midsize manufacturing company with 500 employees. The decision makers at your manufacturing plant are struggling to meet production performance levels. After evaluating the company’s performance level problems, you quickly realize that the company did not follow a standardized operations management process.
The operations manager and the warehouse manager are the key decision makers in your business unit. They have asked for your assistance in presenting the benefits of incorporating a standardized operations management process.
Draft a business memo to the operations manager and warehouse manager of 1,000 words, outlining the following:
•How can your company apply operations management (OM)?
•Discuss 2 examples of how OM is used to improve the efficiency and effectiveness of business operations.
•Discuss the purpose of OM and how it could improve things like production, quality assurance, resource management, and customer stratification.
•Use APA, 6th edition format for all citations and references.