FIN300 Week 4

Edit Document to fit rubric. As a financial analyst for your chosen publicly traded company listed on the NYSE or NASDAQ, you have been asked by the CFO to prepare an investment analysis memo. The goal is to evaluate how the companys current financial decisions affect its future value, using time-value-of-money concepts. The CFO wants your analysis to address both the return expectations and the risk associated with those decisions, including how changes in market conditions could affect valuation. Objective This assignment supports this weeks learning outcomes by requiring you to: Apply time value of money (TVM) principles to real business decisions. Calculate present and future values of cash flows. Discuss the relationship between risk and return and evaluate it using CAPM. Interpret how discount rates and market risk influence investment valuation. Instructions Using the same company as in your previous memoranda, prepare a 500word memo addressed to the CFO. You are to: Identify one recent financial decision or project where the company invested capital or raised financing. Use an AI platform of your choice (ChatGPT, Gemini, Claude, Copilot, etc.) to help estimate the present or future value of the projects cash flows. Ask AI to perform TVM calculations or simulate different discount rate scenarios. Interpret the AIs results in your own words. Discuss how discounting, compounding, and market assumptions affect valuation. Use the Capital Asset Pricing Model (CAPM) to discuss the companys expected return and risk profile relative to the market. Conclude with a short recommendation about how time value and risk-return tradeoffs should influence future investment decisions. Use AI iteratively to test multiple TVM or CAPM assumptions (for example, by adjusting discount rates or betas) and refine your conclusions. Your memo should emphasize your ability to evaluate AI-generated results through professional financial reasoning. Memo Template To: [CFO Name], Chief Financial Officer From: [Your Name], Financial Analyst Date: [Insert Date] Subject: Time Value and Risk Assessment for [Company Name] Introduction Introduce the company and provide context for the financial decision or investment under analysis. Briefly describe its significance. Time Value Analysis Use present and future value concepts to analyze the cash flow timing and impact of the decision. Include quantitative interpretation of results. Risk and Return Discussion Explain how CAPM applies to the companys situation. Discuss beta, expected returns, and how risk affects value. Interpretation and Insights Evaluate what the analysis implies about the firms financial position and strategic outlook. Address market sensitivity and uncertainty. Conclusion Summarize key findings and recommend next steps for managing financial risk and investment planning. Submission Requirements Length: Minimum 500 words (excluding references). Sources: Minimum four credible references in APA format. Use AI responsibly and ethically, following CSU Globals Academic Integrity and AI Use Guidelines. Disclose how you used it (for example: I used Gemini to calculate the present value of Amazons cash flows at varying discount rates, then analyzed how risk adjustments affected results.). Continue using the same company to build continuity in your portfolio of financial memoranda. Rubric [NEW] CT Rubrics [NEW] CT Rubrics Criteria Ratings Pts This criterion is linked to a Learning Outcome Requirement Includes all required components, calculations, and analyses as specified in the assignment, including ratio analysis and DuPont evaluation. 20 pts This criterion is linked to a Learning Outcome Content Demonstrates strong knowledge of financial statements and ratios; accurately interprets and applies concepts from readings and sources. 20 pts This criterion is linked to a Learning Outcome Critical Analysis Provides deep, accurate analysis and interpretation of the companys financial position, trends, and implications using ratios and the DuPont method. 50 pts This criterion is linked to a Learning Outcome Sources / Examples Integrates four or more credible and relevant sources; effectively connects data and examples to support the analysis. 15 pts This criterion is linked to a Learning Outcome Organization, Grammar, and Style Memo is well-organized, professionally formatted, and written with clear sentence structure and minimal errors. 10 pts This criterion is linked to a Learning Outcome APA Style Proper APA formatting with in-text citations and reference list; no more than one significant error. 5 pts Total Points: 120