Does it matter when you receive the money?

•Respond to two of your peers’ responses and any relevant insight to their post. If you agree or disagree state the reason why with specified resource. •200 minimum wordsScott Dolittle I have always believed that building up a nest egg for retirement is absolutely vital, so I have always put money aside in my 401K ever since I was given the option. The primary advantage of a 401K is that the money is not taxed until you start to withdraw from it, meaning you can let your money grow based off the amount from your gross income put in and that money is not considered part of your taxable income when you first put it in. The big negative is that the money is generally inaccessible, incurring fees that need to be repaid if you take out a loan from your 401K. After about 10 years, I have the beginnings of a decent retirement fund, at least I did until everything tanked this year, but the market’s going to bounce back eventually, so that’s not even worth fretting about.Our formula:FV: Future ValuePV: Present Valuei: interest ratet: number of periodsFV = PV*(1+i)tThis formula is due to compound interest For the sake of this exercise, we’ll say I put $5000 in the first year and nothing else after that. We have our interest rate of 4% and our present rate is $5000. There is a five year period. So our formula becomesFV=5000*(1+.04)51+.04 = 1.041.045 = 1.2166531.216653*5000 = FV = 6083.264512Below is a breakdown of the gains over the five year period. Of course, with compound interest the increase grows more and more.PeriodNet CashCash IncreaseStart$5,000.00-Y1$5,200.00$200.00Y2$5,408.00$208.00Y3$5,624.32$216.32Y4$5,849.29$224.97Y5$6,083.26$233.97It is at this point where, unless I am immensely misunderstanding things, I realized that calculations of NPV and IRR may be somewhat problematic, given that, functionally, the $5000 spent on the 401K is immediately re-added to my calculations. If that is correct, then the IRR would be 15%. Now, when it comes to retirement investment, I would consider my own personal discount value to be at least 8%. With that in mind, I believe the NPV would be $5732.25.But I don’t need to know those values to determine that I wouldn’t invest my money in such a low return manner. That will keep me ahead of inflation, which averaged out at about 1.84% (Bureau of Labor Statistics, 2020). There are much better options that provide overall higher returns than 4%. Although to be honest, I feel like I fundamentally missed something crucial doing this, so I would definitely appreciate any feedback on what I missed.Renee GuereroWe all want a comfortable and secure life where we can have financial security, treat ourselves well as well as provide for our loved ones. However, attaining our dreams always requires finding ways to earn more, working hard and having sufficient resources. The first thing that appears to my mind when I need a steady and secure source of income is being employed. However, sometimes, salary is not sufficient to support and cater our all basic and secondary needs. Thus, we start to think of ways to plan our limited income, or for the business, to increase our earning by providing services or products for profit. Setting up a business will enable me to earn an active income. The income that people earn for being self-employed or employed is known as active income since we earn money by exerting more effort and time to work. However, it is vital to know that setting up a business comes with uncertainties. It is possible to lose your hard-earned cash. This is why it is crucial to comprehend and have insight into what getting into prior starting. The most significant hurdle when starting a business is raising the capital. I have to factor in equipment, monthly operational, and government fees to start a business. I have to keep in mind that my business might go bankrupt, not earn or slow down. Despite that fact that I will own a business, my cash flow will not be a liquid and might not put my money out in case of emergency. Despite the challenges, many might start a business due to chances of high returns. However, the truth is that business is not for everyone. Launching a business is known to be time-consuming. It takes sacrifice, patience and hard work for being one’s boss. Typically, self-employed people spend more time as they work compared to employed people, mainly when the business is at its initial stages (Gielnik et al.,2014). My choice of business will rely on knowing what I am capable of handling. By tampering with my goals, time availability, and financial capacity, I will be able to make informed decisions on whether I will start my business. The best way to start a business is by setting up a well-defined and clear financial goal. By understanding and knowing what I want to attain, I will plan an excellent course of action addressing my needs. Having ready cash to launch my own business is just a beginning. There is a lot to learn and doing so I can manage uncertainties and make sure that I don’t lose my money. Realizing my dreams and goals relies on the amount I am willing and ready to gain and not lose.Net Present ValueI want to compute the Net Present Value of cash flows series. The investment will return ten thousand dollars each year over 10 years period, and the rate of discount needed is 10%. The result is that the investment value is today is worth $61,446, meaning that I will be able to pay up $61,446 to receiver over 10 years period to earn $10,000. This means that the future value of the business is $100,000. By paying the price ($61,446), I would be able to receive an IRR-Internal rate of return of 10 percent. By paying amount less than $ 61,000, I would be able to earn IRR that is less than 10 percent. Based on my calculations valuations, I should invest in my financial goal right away. Investing in my financial goal now will enable me to start earning my money back faster and this will assist me to venture into other investments.