Module 4 Assignment

Suppose that a young couple has just had their first baby and they wish to ensure that enough money will be available to pay for their child's college education. Currently, college tuition, books, fees, and other costs, average $12,500 per year. On average, tuition and other costs have historically increased at a rate of 4% per year. Assuming that costs continue to increase an average of 4% per year, how much is the tuition and other costs for one year for this student in 18 years when she enters college?

Suppose your expenses for this term are as follows: tuition: $12,000, room and board: $6,500, books and other educational supplies: $1,500. Further, during the term, you can only work part-time and earn $3,500 instead of your full-time salary of $14,000. What is the opportunity cost of going to college this term, assuming that your room and board expenses would be the same even if you did not go to college? $13,500 $20,000 $24,000 $30,500

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Jenny Jenks has researched the financial pros and cons of entering into a​ 1-year MBA program at her state university. The tuition and needed books for a​ master's program will have an upfront cost of $51,000. If she enrolls in an MBA​ program, Jenny will quit her current​ job, which pays ​$50,000 per year after taxes​ (for simplicity, treat any lost earnings as part of the upfront​ cost). On​ average, a person with an MBA degree earns an extra ​$21,000 per year​ (after taxes) over a business career of 39 years. Jenny believes that her opportunity cost of capital is 5.3​%. Given her​estimates, find the net present value​ (NPV) of entering this MBA program. Are the benefits of further education worth the associated​ costs? The net present value​ (NPV) of entering this MBA program is Are the benefits of further education worth the associated​ costs?

Plz solve both part CASE STUDY: Brian is a 22-year old university graduate having just secured a government job earning $50,000/year. He does not percieve there to be much risk to him keeping the job long into the future. In trying to make some decisions around his financial future she deliberates the following:   1) HUMAN CAPITAL - What discount rate would you use in calculating Brian's gross human capital? Please explain your reasoning for this, both on how you derived the appropriate dscount rate to be used and WHY. Hint: You will need this for answer #2   2) What is the present value of Brian's lifetime human capital, if he plans to work until age 65? Assume he gets his first paycheck at the end of his first month of work and is paid monthly.

Which of the following scenarios would be considered an EXCEPTION to the rule that people on average make more money as they obtain higher levels of education?   a.Julia graduates from a state college with a degree in business and is hired by an insurance company to sell automobile insurance. The company pays Julia an annual salary of $64,000.   b. A college dropout starts a new social media technology company and sells the company and its new technology to a venture capital firm for $50 million dollars making him an instant multi-millionaire.   c. Dan is a high school graduate and decides he does not want to go to college. He finds a full-time job loading and unloading trucks in a local warehouse that pays him $38,000 per year.   d. A chemical engineer with a Ph.D. in biochemistry is paid $200,000 per year to develop new fuels for vehicles that have lower carbon emissions in the atmosphere.

I need the answer as soon as possible

(Quantitative Question) Suppose that a young couple has just had their first baby and they wish to insure that enough money will be available to pay for their child's college education. They decide to make deposits into an educational savings account on each of their daughter's birthday, starting with her first birthday till her 18th birthday. Suppose college tuition, books, fees, and other costs average $12400 per year today. Assume that college costs continue to increase an average of 4.8% per year and that the interest earned on the savings account is 7.9% per year. How much money will the couple's first baby need to have available at age 18 to pay for all four years of her college (assuming that college costs for the year are incurred at the beginning of the year)? Write the answer both in the space provided and on the empty pages on which you will also show your work (Including timelines).

1. Jackie has just finished high school. She will live for two more periods, and she needs to choose a career path. She can either take a job right now as an Uber driver $28,000 in each of the two periods. Or she can get more education in period one to become an economist. Tuition in the first period would be $25,000 and she would earn $85,000 in the second period with her economics degree. a) Suppose the discount rate is 5% (r=.05). If Jackie wants to maximize the present value of her lifetime income, what should she do? Explain and show your calculations. b) Suppose the discount rate is 10% (r= .10). What should Jackie do? Explain and show your calculations c) Suppose the discount rate is 5% but suppose tuition costs are $30,000. What should Jackie do? Explain and show your calculations.

For some reason I can not get my numbers right for this. Can you please explain step by step for the solution. Sharon Fox decided to buy a home in Marblehead, Massachusetts, for $265,000. The rest of the question is below.

Victor is somewhat satisfied with his sales career and has always wondered about a career as a teacher in a public school. He would have to take a year off work to go back to college to obtain his teaching certificate, and that would mean giving up his $52,000 salary for a year. Victor expects that he could earn about the same income as a teacher. Round your answers to the nearest dollar. 1. What would his annual income be after 10 years as a teacher if he received an average 3 percent raise every year? Round Future Value of a Single Amount in intermediate calculations to four decimal places.  2.

You currently pay $10,000 per year in rent to a landlord for a $100,000 house, which you are considering purchasing. You can qualify for a loan of $80,000 at 9% if you put $20,000 down on the house. To raise money for the down payment, you would have to liquidate stock earning you a 15% return. We neglect other concerns, like closing costs, capital gains, and tax consequences of owning. Given the described situation, determine whether it is better to rent or own.

You are a homeowner that has accepted a new job. The new job requires a commute that is undesirably long, but not impossible. You would like to sell your home and move into a new one nearer your job. Your discount rate for the funds received from the sale is 8% (annualized). Potential buyers will come, view and inspect the home, and negotiate a price offer. Your decision is to set (in your mind) the lowest such offer you are willing to accept. For simplicity, we will assume your decision must be an increment of 10K (i.e., 500K, 510K, 520K etc.) We will not go into the details of the negotiating process, and just assume that the eventual price offers come from a random process described below. 4. For-Sale-by-Owner. If you sell on your own, you will generate price offers that are uniformly distributed between [500K, 550K] USD, and will attract one offer every 2 months. However, as commission, the buyer’s agent will get 3% of the sale price (you will get the other 97%). a. To…

Your client has asked you what would be needed to fund your 2 children’s future college costs. Assume each child will begin college at age 18 and graduate in four years. Jamie is currently 14 years old and Johnny is currently 9 years old. Assume current costs are $24,000 per year and are expected to increase by 5% per year and investments earn 7%.   Assuming no existing assets are dedicated to college, what is the annual savings required to fund the children’s education? Please include your calculator keystroke input for each step of this calculation.

What is her return on investment for this financial accounting question?

i need answer urgent

An individual (with log-utility) wants to maximize her happiness level over her adolescence and adult periods. At the age 18 the individual inherits one hundred thousand dollars and must decide how much to consume now (when she is young, period t) and how much to save for her adulthood (period t +1) to maximize the sum of utility over different life stages. The bank will pay interest rate of 5% of every dollar she deposits. The individual discounts future utilities at ß = 0.8. What is the optimal consumption in the adolescent period? 55555.56 55561.55 55558.55 55564.56

Suppose that a young couple has just had their first baby and they wish to ensure that enough money will be available to pay for their child's college education. Currently, college tuition, books, fees, and other costs average $ 12 comma 700$12,700 per year. On average, tuition and other costs have historically increased at a rate of 44% per year. Assuming that college costs continue to increase an average of 44% per year and that all her college savings are invested in an account paying 77% interest, then the amount of money she will need to have available at age 18 to pay for all four years of her undergraduate education is closest to: PLEASE SOLVE IN EXCEL AND SHOW THE WORK

The Jeffersons have asked you what would be needed to fund the children’s future college costs. Assume each child will begin college at age 18 and graduate in four years. Assume current costs are $24,000 per year and are expected to increase by 5% per year and investments earn 7%.   A.      Assuming no existing assets are dedicated to college, what is the annual savings amount required to fund the children’s education? The Jeffersons’ goal is to have an amount at the beginning of the freshman year for each child that is sufficient to fund a serial payment covering the $24,000 of current costs of college adjusted for inflation for each of the four years of college. Please include your calculator keystroke inputs [PV, I/YR, N, FV, and PMT (if needed)] for each step of this calculation. Also include whether any PMTs are in the end mode or the begin mode. B.      What would you say to the Jeffersons about their education funding situation? Write a script of a single paragraph as if you…

Ora (43) and wants to know about saving for her superannuation when she plans to retire at age 60. At the moment, Ora is single but has some prospects. She currently earns about $110,000 per annum, and her employer will let her salary sacrifice to superannuation. You expect that she could earn a net CPI-adjusted rate of 3% in the long term on any investments based on your assessment of her needs and risk profile. Required a) Assuming Ora wants 75% of her pre-retirement salary as annual income, estimate Ora’s income at age 60.   b) Calculate how much Ora needs to have saved by the time she is 60 to have her pre-retirement salary as annual income during retirement. Assume her adjusted life expectancy is 32 years at the age of 60.   c) Ora would like to make additional superannuation contributions up to the concessional contribution cap of $25,000. Assuming that Ora's employer is required to contribute $10,450 to her super, show the tax effectiveness of salary sacrificing to make…

g. Living Expenses: Assume reasonable values for your living expenses. (You may adjust these numbers to fit your estimated costs, but a good starting point for monthly costs are Utilities: $150, TV: $40, Internet: $30, Cell Phone: $40, Phone: $40) You should also include estimates for food, gas, entertainment, and any other expense you can think of. What is your monthly payment for all of your living expenses?

As a recent graduate with an associate degree in Business, you are trying to determine if getting a Bachelor’s degree is worth the money. To help make the decision, you should evaluate the present value of the cash flows from possessing an associate degree versus possessing a bachelor’s degree. Researching current tuition fees and employment data has yielded the following information: * Annual Tuition and costs for a CSU: $10,000 (Assume this covers all expenses: tuition, books, etc.) * Time to Compete: 2 years * Average Salary with associate degree only: $35,000 * Average Salary with bachelor’s degree: $55,000 Assume you will earn the above salaries for ten years. Use the present value tables to complete the following: 1. Determine the Net Present Value of the Cash Flows from the associate degree; there is no tuition cost as you have already completed the degree. 2. Determine the Net Present Value of the Cash Flows from the bachelor’s degree; remember to account for the “cost” of…

As a recent graduate with an associate degree in Business, you are trying to determine if getting a Bachelor’s degree is worth the money. To help make the decision, you should evaluate the present value of the cash flows from possessing an associate degree versus possessing a bachelor’s degree. Researching current tuition fees and employment data has yielded the following information: * Annual Tuition and costs for a CSU: $10,000 (Assume this covers all expenses: tuition, books, etc.) * Time to Compete: 2 years * Average Salary with associate degree only: $35,000 * Average Salary with bachelor’s degree: $55,000 * Present Value of 10% Discount Rate Assume you will earn the above salaries for ten years. Use the present value tables to complete the following: 1. Determine the Net Present Value of the Cash Flows from the associate degree; there is no tuition cost as you have already completed the degree. 2. Determine the Net Present Value of the Cash Flows from the bachelor’s degree;…

This is a Debt Coverage Ratio or DCR question for part a and a CAP rate question for part b]. Wendy is going to purchase a commercial building and is working with a commercial lender at her local bank. The bank has some loan parameters that Wendy must follow. Understanding the rules will allow her to calculate her cash, income, and payment projections. The bank requires a 1.4 debt coverage ratio for her project. Wendy needs to calculate her net operating income or NOI first. The debt coverage ratio is based on this number. Then she will apply for a 20 year loan at 5% with annual payments. Information on the property includes: Gross rents- $780,000 Vacancy 5% Salaries $85,000 Other Fixed Expenses $125,000 Variable Expenses 20% of gross rents.   NOI=_________________ Use the NOI and Debt Coverage requirement to calculate the answer.   What is the largest annual payment the bank will allow? If Wendy had to buy the property at a 6% CAP (capitalization) rate, what is the asking price?