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MM255 M3 Business Investments Written Assignment

Businesses need to purchase equipment, whether it is computers to run their online

platforms or backhoes to dig out the foundations on new houses. They may choose to buy it

now and take out a loan that would cost them interest or they could put aside money today

and earn enough interest on their investment to be able to purchase the equipment in the

future.

You have set a goal for your business to purchase three pieces of equipment. Find three

pieces of equipment for sale online that will help your business work more efficiently or

effectively. Include the URLs. Prioritize the three pieces of equipment that you have chosen

in the order you think you need them and the urgency in which you need them.

Save for the equipment. Select between 5-10 years to save to purchase each piece of

equipment. In order to have the money saved for your first priority piece of equipment

sooner, choose the shortest number of years for the #1 piece of equipment and the longest

number of years for the #3 piece of equipment. Choose an interest rate between 2-10% for

each piece of equipment.

Next, open a blank Excel spreadsheet and type in the purchase price of the equipment you

have chosen. Use Excel PV formula to calculate what you put in today to buy equipment in

the future.

Watch this video to show you how to do this. https://www.youtube.com/watch?v=Ipw2dfzv0jQ

Using a Word document, write some sentences to describe the equipment and how it will

help your business. Include the number of years and interest rate you have chosen as well

as the results Excel gave you. Copy and paste the Excel spreadsheet calculations into the

Word document.

Submit the Written Assignment portion of the Competency Assessment by clicking on

Assignments along the top menu bar of the course, then Competency Assessment

Dropbox.

 

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