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Before you begin, review the Project Case Study provided. Then, using your financial calculator, calculate and address the following:

1. Using the uneven cash-flow method for multiple children, perform the time value of money calculations to determine the clients educational funding needs. Address the following in your response and include any assumptions used in making your recommendations:

a.) Net present value (NPV) of the total funding need

b.) The annual savings required to meet the education goal

FIN 350 Project Case Study

You are a CFP professional and have met with Alix and Eddy Pereira, who have come to you for help with several financial planning goals. Alix and Eddy own a computer software company: E & A, LLC. Alix is 32 years old, and Eddy is 37 years old. They are happily married and have two children: Tomas (age 5) and Maya (age 3). All family members are in good health, and the family has no history of serious health issues. Based on these facts, along with their family health histories, Alix and Eddy each expect to live to be 90 years old. Alix and Eddy have completed a risk tolerance questionnaire, which indicates that they have a high tolerance for risk. They would like their portfolio and investment decisions to be based on their expected wealth, their desire for security, the funding levels that they are trying to achieve, and the likelihood of achieving those funding levels.

Education Planning- The couple plans to send both Tomas and Maya to Ivy League colleges and expect college expenses to be $50,000 per year (in todays dollars) for each child, for four years of school. The $100,000 in current education savings is in a money market account. The couple would like to take advantage of any gifting opportunities for their children. * Assume annual tuition inflation rate and an average anual return on investment.*

Let me know if more information is needed. There is more in the Case Study but I did not want to overwhelm.

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