You are in medical school and are trying to decide what specialty you want to train in. You know there is a big investment of time in your schooling, and you are trying to maximize your return on investment (salary). You are also considering becoming a social influencer, a surfer, or a hospital administrator. You are looking short-term, so you are only looking at the first five periods of employment: otions phthalmologist eurosurgeon ermatologist imary Care ysician ediatrician thopedic Surgeon rfer ocial Influencer ospital dministrator Salary Years P1-P5 P3 P1 P2 P4 P5 $3,601,074 $1,475,000 $1,843,750 $2,304,688 $2,880,859 $25,000 $4,500,000 $5,625,000 $7,031,250 $10,546,875 $1,500,000 $1,875,000 $2,343,750 $2,929,688 $3,662,109 $625,000 $781,250 $976,563 $1,220,703 $1,525,879 $875,000 $1,093,750 $1,367,188 $1,708,984 $2,136,230 $2,400,000 $3,000,000 $3,750,000 $4,687,500 $5,859,375 $7,500,000 $9,375,000 $375,000 $468,750 $585,938 $8,500,000 $9,350,000 $300,000 $375,000 $468,750 $625,000 $687,500 $756,250 $831,875 $915,063 • If you have an opportunity cost of your time of 3%, what career option would generate the highest present value of your income? If your opportunity cost of your time rose to 5% what career option would generate the highest present value of your income?
You are in medical school and are trying to decide what specialty you want to train in. You know there is a big investment of time in your schooling, and you are trying to maximize your return on investment (salary). You are also considering becoming a social influencer, a surfer, or a hospital administrator. You are looking short-term, so you are only looking at the first five periods of employment: otions phthalmologist eurosurgeon ermatologist imary Care ysician ediatrician thopedic Surgeon rfer ocial Influencer ospital dministrator Salary Years P1-P5 P3 P1 P2 P4 P5 $3,601,074 $1,475,000 $1,843,750 $2,304,688 $2,880,859 $25,000 $4,500,000 $5,625,000 $7,031,250 $10,546,875 $1,500,000 $1,875,000 $2,343,750 $2,929,688 $3,662,109 $625,000 $781,250 $976,563 $1,220,703 $1,525,879 $875,000 $1,093,750 $1,367,188 $1,708,984 $2,136,230 $2,400,000 $3,000,000 $3,750,000 $4,687,500 $5,859,375 $7,500,000 $9,375,000 $375,000 $468,750 $585,938 $8,500,000 $9,350,000 $300,000 $375,000 $468,750 $625,000 $687,500 $756,250 $831,875 $915,063 • If you have an opportunity cost of your time of 3%, what career option would generate the highest present value of your income? If your opportunity cost of your time rose to 5% what career option would generate the highest present value of your income?
Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)
7th Edition
ISBN:9780357033609
Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Publisher:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Chapter9: Insuring Your Health
Section: Chapter Questions
Problem 1FPE
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Transcribed Image Text:1) You are in medical school and are trying to decide what specialty you want to train in. You know
there is a big investment of time in your schooling, and you are trying to maximize your return on
investment (salary). You are also considering becoming a social influencer, a surfer, or a hospital
administrator. You are looking short-term, so you are only looking at the first five periods of
employment:
Options
Ophthalmologist
Neurosurgeon
Dermatologist
Primary Care
Physician
Pediatrician
Orthopedic Surgeon
Surfer
Social Influencer
Hospital
Administrator
Salary Years P1-P5
P3
P1
P2
P4
P5
$3,601,074
$1,475,000 $1,843,750 $2,304,688 $2,880,859
$25,000 $4,500,000 $5,625,000 $7,031,250 $10,546,875
$1,500,000 $1,875,000 $2,343,750 $2,929,688 $3,662,109
$625,000 $781,250 $976,563 $1,220,703 $1,525,879
$875,000 $1,093,750 $1,367,188 $1,708,984 $2,136,230
$2,400,000 $3,000,000 $3,750,000 $4,687,500
$7,500,000 $9,375,000 $375,000 $468,750
$8,500,000 $9,350,000 $300,000 $375,000
$5,859,375
$585,938
$468,750
$625,000 $687,500 $756,250
$831,875
$915,063
• If you have an opportunity cost of your time of 3%, what career option would generate the
highest present value of your income?
If your opportunity cost of your time rose to 5% what career option would generate the highest
present value of your income?
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