Description
1. Come up with your own situation involving ROI. It can be something that pertains to your life (buying a car and using it for UBER/Lyft, paying for college, buying a computer and using it to build a business, etc.), or anything that involves putting money into some kind of investment and calculating its return. Think of all the possible factors that will affect calculations for ROI. These may include salary, bonuses, loans, interest rates, costs, insurance payments, etc. Produce at least three different scenarios. Your unit of time doesn’t necessarily have to be years. It may be more practical to use months, decades, etc. Find the best investment out of your scenarios and evaluate why you think it is the best option.
2. Talk to an accountant. You may have to talk to more than one for this assignment. What you are looking for is:
A) How does a company manage its accounts payable?
B) How does a company manage its inventory?
C) How does a company manage its accounts receivable?
You are looking for specific working capital strategies like how often do they count inventory, what approach do they use in counting inventory, how do they make sure a customer pays a bill, or how do they make sure they pay their vendors. This can increase your knowledge of how this works for your company you work for, but it can be very informative for when you start a business. A PLUS will be if you include metrics that the accountant/business uses to measure these activities.
YOU CAN CHOOSE 1 OR 2. You do not need to do 2 of them
