You receive two job offers in the same big city. The first job is close to your parents' house, and they have offered to let you live at home for a year so you won't have to incur expenses for housing, food, or cable and Internet. This job pays $40.000 per year. The second job is far from your parents' house, so you'll have to rent an apartment with parking ($12.000 per year), buy your own food ($2.250 per year), and pay for your own cable and Internet ($550 per year). This job pays $45,000 per year. You still plan to do laundry at your parents' house once a week if you live in the city, and you plan to go into the city once a week to visit with friends if you live at home. Thus, the cost of operating your car will be about the same either way. In addition, your parents refuse to pay for your cell phone service ($710 per year). Read the requirements Requirement 1. Based on this information alone, what is the net difference between the two alternatives (salary, net of relevant costs)? Begin by computing the net salary for each alternative. (Complete all input fields. Enter a "0" for any zero balances.) Job #1 Job #2 45000 Salary Less: Relevant expenses Salary, net The net difference between the two jobs is 40000 I would save this much money if I chose Requirement 2. What information is irrelevant? Why? The irrelevant because they Requirement 3. What qualitative information is relevant to your decision? I might consider whether I would benefit if V Requirement 4. Assume you really want to take Job #2, but you also want to live at home to cut costs. What new quantitative and qualitative information will you need to incorporate in your decision? If I want Job #2 and I want to live at home. I will benefit by the However, I will need to factor in V. ▼ Qualitatively, I will want to consider whether the
You receive two job offers in the same big city. The first job is close to your parents' house, and they have offered to let you live at home for a year so you won't have to incur expenses for housing, food, or cable and Internet. This job pays $40.000 per year. The second job is far from your parents' house, so you'll have to rent an apartment with parking ($12.000 per year), buy your own food ($2.250 per year), and pay for your own cable and Internet ($550 per year). This job pays $45,000 per year. You still plan to do laundry at your parents' house once a week if you live in the city, and you plan to go into the city once a week to visit with friends if you live at home. Thus, the cost of operating your car will be about the same either way. In addition, your parents refuse to pay for your cell phone service ($710 per year). Read the requirements Requirement 1. Based on this information alone, what is the net difference between the two alternatives (salary, net of relevant costs)? Begin by computing the net salary for each alternative. (Complete all input fields. Enter a "0" for any zero balances.) Job #1 Job #2 45000 Salary Less: Relevant expenses Salary, net The net difference between the two jobs is 40000 I would save this much money if I chose Requirement 2. What information is irrelevant? Why? The irrelevant because they Requirement 3. What qualitative information is relevant to your decision? I might consider whether I would benefit if V Requirement 4. Assume you really want to take Job #2, but you also want to live at home to cut costs. What new quantitative and qualitative information will you need to incorporate in your decision? If I want Job #2 and I want to live at home. I will benefit by the However, I will need to factor in V. ▼ Qualitatively, I will want to consider whether the
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
100%
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**Requirement 1.** Based on this information alone, what is the net difference between the two alternatives (salary, net of relevant costs)?
Begin by computing the net salary for each alternative. (Complete all input fields. Enter a "0" for any zero balances.)
| - | **Job #1** | **Job #2** |
| --------------------- | ---------- | ---------- |
| Salary | 40000 | 45000 |
| Less: Relevant expenses | 710 | 13910 |
| Salary, net | __________ | __________ |
The net difference between the two jobs is __________.
I would save this much money if I chose __________.
**Requirement 2.** What information is irrelevant? Why?
The __________ is/are irrelevant because they __________.
**Requirement 3.** What qualitative information is relevant to your decision?
I might consider whether __________. I would benefit if I __________.
**Requirement 4.** Assume you really want to take Job #2, but you also want to live at home to cut costs. What new quantitative and qualitative information will you need to incorporate in your decision?
If I want Job #2 and I want to live at home, I will benefit by the __________. However, I will need to factor in __________. Qualitatively, I will want to consider whether the](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F32a4d647-987c-4ad2-891e-f9e898d9a146%2Fff6fb59f-fb18-4962-ad92-696a30aa6d42%2F1oa799e_processed.png&w=3840&q=75)
Transcribed Image Text:### Decision-Making and Financial Planning Exercise
You have received two job offers in the same city. The first job is closer to your parents' house, and they have offered to let you live at home for a year so you won't have to incur expenses for housing, food, or cable and Internet. This job pays $40,000 per year. The second job is far from your parents' house, so you'll have to rent an apartment with a starting rent of $12,000 per year, buy your own cable and Internet ($550 per year), pay for your own electric and Internet ($650 per year). This job pays $45,000 per year. You still plan to do laundry at your parents' house once a week if you live in the city, and you plan to go into the city once a week to visit with friends if you live at home. Thus, the cost of operating your car would be about the same either way. In addition, your parents refuse to pay for your cell phone service ($710 per year).
**Read the [requirements](#)**
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**Requirement 1.** Based on this information alone, what is the net difference between the two alternatives (salary, net of relevant costs)?
Begin by computing the net salary for each alternative. (Complete all input fields. Enter a "0" for any zero balances.)
| - | **Job #1** | **Job #2** |
| --------------------- | ---------- | ---------- |
| Salary | 40000 | 45000 |
| Less: Relevant expenses | 710 | 13910 |
| Salary, net | __________ | __________ |
The net difference between the two jobs is __________.
I would save this much money if I chose __________.
**Requirement 2.** What information is irrelevant? Why?
The __________ is/are irrelevant because they __________.
**Requirement 3.** What qualitative information is relevant to your decision?
I might consider whether __________. I would benefit if I __________.
**Requirement 4.** Assume you really want to take Job #2, but you also want to live at home to cut costs. What new quantitative and qualitative information will you need to incorporate in your decision?
If I want Job #2 and I want to live at home, I will benefit by the __________. However, I will need to factor in __________. Qualitatively, I will want to consider whether the
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