You have been offered a job with an unusual bonus structure. As long as you stay with the firm, you will get an extra $ 66 comma 000 every 7 years, starting 7 years from now. What is the present value of this incentive if you plan to work for the company for 42 years and the interest rate is 5 % (EAR)? (Note : Be careful not to round any intermediate steps less than six decimal places.)

Professor Wendy Smith has been offered the following​ opportunity: A law firm would like to retain her for an upfront payment of $ 50 comma 000. In​ return, for the next year the firm would have access to eight hours of her time every month. As an alternative payment​ arrangement, the firm would pay Professor​ Smith's hourly rate for the eight hours each month. ​ Smith's rate is $ 540 per hour and her opportunity cost of capital is 15 % per year. What does the IRR rule advise regarding the payment​ arrangement? (Hint: Find the monthly rate that will yield an effective annual rate of 15 %​.) What about the NPV​ rule?

Professor Brad has been offered the following​ opportunity: A law firm would like to retain his for an upfront payment of $50000. In​ return, for the next year the firm would have access to eight hours of his time every month. As an alternative payment​ arrangement, the firm would pay Professor Brad's hourly rate for the eight hours each month. Brad​'s rate is ​$535 per hour and her opportunity cost of capital is 13 % per year. What does the IRR rule advise regarding the payment​ arrangement? ​(Hint​: Find the monthly rate that will yield an effective annual rate of 13 %.) What about the NPV​ rule?   A. What is the IRR?

Assume that you will have a 10-year, $20,000 loan to repay when you graduate from college next month. The loan, plus 10 percent annual interest on the unpaid balance, is to be repaid in 10 annual installments of $3,255 each, beginning one year after you graduate. You have accepted a well-paying job and are considering an early settlement of the entire unpaid balance in just three years (immediately after making the third annual payment of $3,255). Prepare an amortization schedule showing how much money you will need to save to pay the entire unpaid balance of your loan three years after your graduation. (Round your answers to the nearest dollar amount. Enter all amounts as positive numbers.) Interest Period Date of Graduation Year 1 Year 2 Year 3 Annual Payment Annual Interest Expense @10% a. Actual net-of-tax interest cost b. Effective interest rate Reduction in Unpaid Balance Unpaid Balance One of the advantages of borrowing is that interest is deductible for income tax purposes. a.…