Market Investment

          Market Investment

Introduction

This particular research will be on the vehicle producing Company. The Company provides a variety of cars in different years. The investigation is the Volkswagen Company in the year 2019 (Costa, 2018). The Company produces all sorts of vehicles which have got some demand at the market place.

Summary and description of the investment asset  

The basis of this actual research has got some different types of assets. The assets may be in the form of intangible assets, inventories, financial services, assets for sale, and so forth and so on. Volkswagen is a huge company that produces both heavy commercial vehicles and the personal cars that care meant for fun and luxury.  The objective of this actual study is to come up with a relevant analysis that is on the tangible assets, effective annual rate, Yield to maturity, and the total plan investment (Bachmann, 2017). An asset refers to an item or property that a person or Company owns that is valuable and can meet debts, legacies, or commitments. An effective annual interest rate refers to the real returns on the interest investment payment or the savings account that is compound over the given time. The effective annual rate can also be an effective annual rate or the effective rate.

The Yield to maturity refers to the total return that is on the bond held until the maturity stage. The Yield maturity is a yield of a long-term relationship, which is as a result annual rate. The total return can have a simple definition as the measure of performance on the actual return investment rate with a pool of evaluation over the given time. The total return can be in the form of dividends, capital gains, or the interest that is in the way of investments of fixed incomes (Jenkinson, 2020). The total return can be into two categories, that is capital appreciation or fixed-income investment that represents the change of the asset in the market price.

       Recommendations

1. The Volkswagen Company should remove all the negative incentives on its investments.

As per the analysis of the Volkswagen investment analysis, there is a lot of spending on finances. This observation is evident in both two years of Investments, which is the year 2018 and the year 2019. In the year 2018, there is a financial asset of 4,750 dollars, and in the year 2019, there are 5,400 dollars (Panasiuk, 2015). This analysis clearly shows that the cost of the assets under finance spending is very high.

1. The Company of Volkswagen removes the cross-barriers. This observation will significantly help to reduce the cost of the property asset. According to the analysis, the price of property assets in the investment year of 2018 is 2,800 dollars 2019 is 3,400 dollars. To maximize the profit of vehicle production, there is a need to reduce the rate of spending on the property. The cost of the property asset can buy all the cross-boarder barriers of the investment.
2. The Volkswagen Company should also improve its marketing strategies of the vehicles. Having the fact that the Volkswagen Company produces a variety of vehicles that includes both the personal cars and the heavy commercial vehicles, the Company should come with a suitable strategy on how to expand on their market. As per the analysis of the study, the observation that an effective annual investment rate in the year 2018 is 147.3153 while the year 2019 is 147.3227. This observation from the analysis clearly shows that there is no improvement in the subsequent year of 2019, which is still at the constant value of 147.3153.
3. The Volkswagen company should also improve its rate of annual productivity. The improvement of the yearly productivity can produce more vehicles that include both personal cars and heavy commercial vehicles or the tracks. As per the observation of the analysis, the total amount that is spent on all the assets is 18,950 dollars, but there is only a total return of 19, 450 dollars in the year 2018. The total amount spent on all the assets in the year 2019 is 20,500 dollars, with a total return of 21,300 dollars. This means that the profitability of the Company is meager.
4. The Company of Volkswagen should also reduce the cost of all the assets that include the intangible assets, financial services, Marketable securities, assets for sale, the property of assets, and the property assets. The reduction in the cost of the investment assets will automatically increase the profitability of the Volkswagen Company.

Conclusions

1. The total amount that is on the assets in the year 2018 is 18,950 dollars, with a total return of 19,450 dollars, while the cost of assets in the year 2019 is 20,500 dollars with a total investment return of 21,300 dollars. This analysis gives a clear illustration that the profitability of the Company is meager.
2. The Volkswagen company is spending a total of 4,750 dollars on financial assets in the year 2018. The Company also pays a sum of 5,400 dollars in the year 2019; this clearly shows that the cost spent on financial assets is very high.

• As per the observation of the comparison of the effective annual rate from the analysis, it clearly shows that there is no significant change in the effective annual rate between the year 2018 and the year 2019.

Reference

Panasiuk, I., & Turkina, L. (2015). The evaluation of the investment efficiency of SOx scrubber installation. Transportation Research Part D: Transport and Environment, 40, 87-96.

Jenkinson, T., Landsman, W. R., Rountree, B. R., & Soonawalla, K. (2020). Private equity net asset values and future cash flows. The Accounting Review, 95(1), 191-210.

Bachmann, R., Ehrlich, G., & Ruzic, D. (2017). Firms and collective reputation: The Volkswagen emission scandal as a case study (No. 6805). CESifo Working Paper.

Anunciação, P. F., Rosa, M., de Costa, M., & Oliveira, V. (2018). The Importance of Logistics Dimension in Information Management.