You have a job in a company that pays you P350,000 per year. For a better future, you want to get a Master's degree that could cost P100,000 but cannot continue your job while studying. If you decide to give up your job and return to school to earn a Master's degree
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You have a job in a company that pays you P350,000 per year. For a better future, you want to get a Master's degree that could cost P100,000 but cannot continue your job while studying. If you decide to give up your job and return to school to earn a Master's degree, how much would be your opportunity cost?
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- Accounting Eva is considering what major to study in college. Her utility function is based on the income she earns, and is defined by U(I) = 10.7. If she majors in metalworking, she will earn $120,000 per year with probability 1. If she majors in finance, she will earn $250,000 per year with probability 0.5 (assuming the market goes well) and $45,000 with probability 0.5 (if the market tanks and she has to go move in with her parents and work at as an SAT tutor). 1. Is she risk averse, risk neutral, or risk loving? Explain. 2. Write out the equation for her expected utility for each major 3. Which major will she pick? Show your work. 4. Suppose someone offers her insurance for the possibility that the market tanks. This insurance will provide her an amount of income in addition to the wages that makes her indifferent between metalworking and finance. What is this amount, and what is the cost of the insurance? (note: many possible answord)1) In a few short years, you will graduate and enter the workforce. Let us suppose that you and a friend both start working at the age of 23 and decide on very different ways to fund your eventual retirement. In this exercise, we explore these decisions. Neither of you have any savings (P = 0), plan to retire at age 66, and expect to earn 8.4% annual interest, compounded monthly, on all your investments. a) Having taken this class, you decide to start immediately, investing $120 per month. How much money will be in your account in 20 years? b) At this point (you are now 43 years old), you will stop making monthly deposits into your account. Now, the amount you calculated in part (a) will accumulate interest for 23 years (until you are 66 years old). How much is in your account now? Indicoob selled phamI need the answer as soon as possible
- Assuming that you currently work for a consulting firm. You are considering opening your own consulting firm, where you expect to earn RM 200,000 per year once you get established. To run his own firm, you would need an office and a law clerk. You have found the perfect office, which rents for RM 50,000 per year. A law clerk could be hired for RM 35,000 per year. To open your own consulting firm, you would have to quit his current job, where he is earning an annual salary of RM125,000. What are your accounting costs? What are your opportunity costs? Would your consulting firm be profitable? How much would you need to make in revenues to earn Positive economic profits?D9)Two different questions..
- Mark is trying to decide if he should attend college or not. Part of his decision will be based on the return on investment of college. He estimates costs to attend Texas Tech for 4 years including room and board are $20,000 per year. He also assumes tuition costs will rise by 3.5% per year. How much is a 4-year degree going to cost Mark? $92,183.27 $84,298.86 $7,231,158.87 $1,314,002.83Suppose you have just finished your third year of college and expect to graduate with a bachelor's degree in accounting after completing two more semesters of coursework. The salary for entry-level positions with an accounting degree is approximately $48,000 in your area. Shelton Industries has just offered you a position in its northwest regional office. The position has an annual salary of $40,000 and would not require you to complete your undergraduate degree. If you accept the position, you would have to move to Seattle. Required: For each of the following costs, choose 'Yes' to indicate if the cost or benefit is a relevant cost or benefit, irrelevant cost or benefit, sunk cost, or opportunity cost (can choose "Yes" in more than one column if applicable). (Select 'No' in the inappropriate cells.) $40,000 salary from Shelton Anticipated $48,000 salary with an accounting degree Tuition and books for years 1 to college Cost to relocate to Seattle Tuition and books for remaining two…You are 20 years old and have completed your BBA and want to pursue further education but you don’t want to take money from your father. Your plan is to start working and earn enough money so that you can finance your degree on your ownand get yourself enrolled in five years’ time. You estimate that the annual cost of doing an MBA 5 years from today will be PKR 400,000 and the program will be two years long. You will need the money at the beginning your program so that you are not worried about how to clear your dues during your studies. Luckily you go for a job interview and they hire you and you start working at a salary of PKR 25,000. So you decide that 50% you will deposit in a saving account at a 10% rate with monthly compounding for your further studies and the remaining amount you will use for your daily expenses. 1. Will you be able to meet your goal at this current saving rate? 2. What percentage of your salary should you save if you want to have exactly your university…
- Suppose that you start working for a company at age 25. You are offered two rather unlikely, but quite enticing, retirement plans from which you are allowed to choose one. [Round all answers to the nearest dollar.] Retirement plan 1: When you retire, you will receive $16,000 for each year of service. Retirement plan 2: When you start work, the company deposits $2500 into a savings account that is guaranteed to pay a yearly rate of 16%. When you retire, the account will be closed and the balance given to you. A. Determine the amount you would receive under plan 1, if you retired at age 55. $ B. Determine the amount you would receive under plan 1, if you retired at age 65. C. Determine the amount you would receive under plan 2, if you retired at age 55. D. Determine the amount you would receive under plan 2, if you retired at age 65.VijayVictor hernandez Considers a Career Change 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 $53,000 salary for a year. Victor expects that he could earn about the same income as a teacher. (a) What would his annual income be after 10 years as a teacher if he received an average 3 percent raise every year? (Hint: Use Appendix A.1.) (b) Victor also could earn $4,000 each year teaching during the summers. What is the accumulated fu- ture value of earning those annual amounts over 10 years assuming a 5 percent raise every year? (Hint: Use Appendix A.3.)