Suppose that you are in the fall of your senior year and are faced with the choice of either getting a job when you graduate or going to law school. Of​ course, your choice is not purely financial. ​ However, to make an informed decision you would like to know the financial implications of the two alternatives. ​ Let's assume that your alternatives are as​ follows:   If you take the​ "get a​ job" route you expect to start off with a salary of ​$35,000 per year. There is no way to predict what will happen in the​ future, your best guess is that your salary will grow at 4 percent per year until you retire in 44 years. As a law​ student, you will be paying ​$30,000 per year tuition for each of the 3 years you are in graduate school. ​ However, you can then expect a job with a starting salary of ​$75,000 per year. ​ Moreover, you expect your salary to grow by 8 percent per year until you retire 38 years later.   ​Clearly, your total expected lifetime salary will be higher if you become a lawyer. ​ However, the additional future salary is not free. You will be paying ​$30,000 in tuition at the beginning of each of the 3 years of law school. In​ addition, you will be giving up a little more than ​$109,000 in lost income over the three years of law​ school:   ​$35,000 the first​ year, $36,400 the second​ year, and ​$37,856 the third year.   a.  To start your analysis of whether to go to law​ school, calculate the present value of the future earnings that you will realize by going directly to​ work, assume a discount rate of 10 percent. b.  What is the present value today of your future earnings if you decide to attend law​ school, assuming a discount rate of 10 ​percent? Remember that you will be in law school for 3 years before you start to work as a lawyer. ​ (Hint: assume that you are paid at the end of each year so that your first salary payment if you decide to go to law school occurs 4 years from​ now.) c.  If you pay your law school tuition at the beginning of each​ year, what is the present value of your​ tuition, assuming a discount rate of 10 ​percent?

You have just entered a two-year part-time Executive MBA. The tuition fee is $15,000 per year payable at the beginning of each year. Before the program you eamed $40, 000 per year. Your expected salary after graduation. is $55, 000 per year. You can invest your money at 8%. Assume that you will work for 30 years after graduation. The salary differential of $15,000 will continue through this period. How much is your EMBA worth?

You are scheduled to graduate from the college student in May. You have received two job offers as follows: A position at a large accounting firm with a salary offer of $70,000/year. The firm typically provides annual pay raises in the amount of 4% per year. You will likely be promoted every other year and receive a $10,000 raise at the time of each promotion. A position at a bank with a salary of $78,000/year. The firm typically provides annual pay raises in the amount of 4% per year. You will not be eligible for promotion until your 5th year and will have to change employers after that to obtain further promotions. The benefits, hours, working conditions, and other factors relating to the two positions are otherwise indistinguishable. Using a ten-year time horizon and a 5% discount rate, what is the present value of each position? Considering only the monetary factors, which position should you accept, why? In today's money, how much better is the more favorable of the two positions…

As a graduating senior, ChunKumora of Manhattan, Kansas, is eager toenter the job market at an anticipated annual salary of $54,000. Assuming an average inflation rate of 3 percent and an equalcost-of-living raise, what will his salarypossibly become in ten years? In 20 years? (Hint: UseAppendix A.1.) To make real economic progress, howmuch of a raise (in dollars) does Chun need to receivenext year and the year after?

(Need all three questions. ..Attempt if you will solve both parts ...thanks)   Right after graduating from FSU, you get your dream-job with a starting salary 100,000$ annually that is expected to grow by 5% every year. You plan to stay in that position for 30 years and then retire. You choose to contribute to a 401K, which along with your employer’s contributions will receive 15% of your annual salary. Your 401K is expected to make an annual return of 10% until you retire. Assume annual payments and annual compounding.   1. Estimate your final annual salary before retirement.   2. Estimate how much money you would have in your 401K by the time your retire (t = 30).   3. At retirement, you decide to draw an annuity for the next 25 years by placing your funds in an account that earns a guaranteed 5% per year. Estimate your annual pension.

You are considering a job that offers a starting bonus of $2,500, paid immediately, and an annual salary of $44,000, $47,000, and $50,000 for each of the next 3 years, respectively. One year the offer expires, you will receive a gratuity of $20,000. The annual salary is paid at the end of each year. What is this offer worth today at a discount rate of 5.6 percent?

Suppose that you decide to go to summer school. Your tuition cost is $3,000, books and supplies cost $300, and room and board cost $1,000. You would not work while you attend summer school. If you did not go to summer school you would take a summer job which earns you $5,000 for the summer and your cost of room and board in the summer would be $2,000. Considering only this information, what is the dollar value of your total opportunity cost of attending summer school?

After completing your Bachelor of Business (Accounting) degree, suppose you secure a permanent position as an accountant. You drafted a financial plan to retire in 30 years from now. So, you are thinking about creating a fund that will allow you to receive $40,000 at the end of each year for 25 years after your retirement. The interest rates are expected to be 2.25% per annum during the 30year pre- retirement period and 1.75% during the retirement period. Required: a) To provide the 25- year, $40,000 a year annuity, calculate how much should be in the fund account when you retire in 30 years. b) How much will you need today as a single amount to provide the fund calculated in part (a) if you earn 2.35% per year during the 30 years preceding your retirement?c) What effect would a change (increase/decrease) in the interest rates, both during and prior to retirement, have on the values calculated in parts (a) and (b)? Explain why. d) (Using different interest rates) Assume that the…

Studies concluded that college graduation is a very good investment. Suppose a college graduate makes 75 percent more money per hour than a graduate from high school. If a High School graduate's lifetime earnings average $1,200,000, what is the expected value of college graduation?

A prospective MBA student earns $60,000 per year in her current job and expects that amount to increase by 13% per year. She is considering leaving her job to attend business school for two years at a cost of $40,000 per year. She has been told that her starting salary after business school is likely to be $130,000 and that amount will increase by 11% per year. Consider a time horizon of 10 years, use a discount rate of 9%, and ignore all considerations not explicitly mentioned here. Assume all cash flows occur at the start of each year (i.e., immediate, one year from now, two years from now,..., nine years from now). Also assume that the choice can be implemented immediately so that for the MBA alternative the current year is the first year of business school. What is the net present value of the more attractive choice? Please round your answer to the nearest dollar.