Suppose, for simplicity, that a doctor trains for 1 year, is a resident for 1 year and works one year. You are given the following data for a doctor and for an analyst (who begins work immediately after college) over three years. Year 1: Doctor= $ -60,000; Analyst= $30,000 Year 2: Doctor= $ 90,000; Analyst = $48,000 Year 3: Doctor= $ 144,000; Analyst = $72,000 Which career path would one be financially better off, Doctor or Analyst? Assume a discount rate of 20%
Suppose, for simplicity, that a doctor trains for 1 year, is a resident for 1 year and works one year. You are given the following data for a doctor and for an analyst (who begins work immediately after college) over three years. Year 1: Doctor= $ -60,000; Analyst= $30,000 Year 2: Doctor= $ 90,000; Analyst = $48,000 Year 3: Doctor= $ 144,000; Analyst = $72,000 Which career path would one be financially better off, Doctor or Analyst? Assume a discount rate of 20%
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Suppose, for simplicity, that a doctor trains for 1 year, is a resident for 1 year and works one year. You are given the following data for a doctor and for an analyst (who begins work immediately after college) over three years. Year 1: Doctor= $ -60,000; Analyst= $30,000 Year 2: Doctor= $ 90,000; Analyst = $48,000 Year 3: Doctor= $ 144,000; Analyst = $72,000 Which career path would one be financially better off, Doctor or Analyst? Assume a discount rate of 20%. Show your work
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