Develop MS - Word Reports and a spreadsheet model with simulation for financial planning using Excel

Your plan was to build up a spreadsheet model, which can be used as a template to develop financial plans for the company’s employees. The data in the spreadsheet would be tailored for each employee, and rows would be added to it to reflect the employee’s planning horizon. After discussing this with your boss, one of her criticisms was the assumption of a constant annual salary growth rate. She noted that most employees experience some variation in the annual salary growth rate from year to year. In addition, she pointed out that the constant annual portfolio growth rate was unrealistic and that the actual growth rate would vary considerably from year to year. She further suggested that a simulation model for the portfolio projection might allow you to account for the random variability in the salary growth rate and the portfolio growth rate. After some research, you decided to assume that the annual salary growth rate would vary from 0% to 5% and that a uniform probability distribution would provide a realistic approximation. Further, you found that the annual portfolio growth rate could be approximated by a normal probability distribution with a mean of 10% and a standard deviation of 5%. With this information, you set off to redesign the spreadsheet so that it could be used by the company’s employees for financial planning.