1. PERSONAL INVESTMENT Team 6EGR 403 Techie: Jeremy Deake Summarizer: Winnie Lau Organizers: Mimi Ngo Nicolas Tully

2. Outline Description of project Scenarios Analysis –Sensitivity Analysis Results Conclusion Resources

3. Description of Project Comparison between a stock vs. a mutual fund –By using FV and IRR method 25 years old Engineer - $50,000/year (Increase of 2%/year) - Saving 10% of salary/year - Period of 25 years

4. Scenarios Scenario 1 – Stock Investment Invest in Pfizer, Inc. Scenario 2 – Mutual Fund Investment Vanguard Energy Fund

5. Analysis Scenario 1 – Stock Investment Collected history of: - dividends per share - price per share Estimated growth by developing trends Calculated FV and IRR

6. Analysis

8. Scenario 2 – Mutual Fund Investment Collected history of: - rate of return for years 1, 5, 7, 9, and 9.66 Estimated growth by developing a trend Calculated FV and IRR

9. Analysis

10. Sensitivity Analysis Scenario 1 – Stock Investment

11. Sensitivity Analysis Scenario 1 – Stock Investment

12. Sensitivity Analysis Scenario 1 – Stock Investment

13. Sensitivity Analysis Scenario 1 – Stock Investment

14. Sensitivity Analysis Scenario 1 – Stock Investment

15. Sensitivity Analysis Scenario 2 – Mutual Fund Investment

16. Sensitivity Analysis Scenario 2 - Mutual Fund Investment

17. Results Results using original parameters Results from Sensitivity Analysis ResultsStockMutual Fund FV$197,431.39 $1,812,103.62 IRR 1.26% 16.67%

18. Conclusion The best option for this engineer is to invest in Vanguard Energy Fund Stock investment gives higher ROR if the price/share increases a lot Is better to invest in smaller growing business but involves higher risks

19. Resources Professor Dr. Rosenkrantz Standard and Poor’s www.morningstar.com www.forbes.com