You have chosen biology as your college major because you would like to be a medical major. However, you find that the probability of being accepted to medical school is about 10 %. If you are accepted to medical school, then your starting salary when you graduate will be $300,000 per year. However, if you are not accepted, the you would choose to work in a zoo, where you will earn $40,000 per year. Without considering the additional years you would spend in school if you study medicine or the time value of money, what is your expected starting salary as well as the standard deviation of the starting salary?

Your friend in mechanical engineering has invented a money machine. The main drawback of the machine is that it is slow. It takes one year to manufacture $100. However, once built, the machine will last forever and will require no maintenance. The machine can be built immediately, but it will cost $1,000 to build. Your friend wants to know if he should invest the money to construct it. If the interest rate is 5.5% per year, what should your friend do? The NPV of the machine is $ (Round to the nearest dollar.) What should your friend do? (Select the best choice below.) A. Accept the machine because the NPV is equal to or greater than $0. B. Accept the machine because the NPV is equal to or less than $0. C. Reject the machine because the NPV is equal to or greater than $0. D. Reject the machine because the NPV is less than $0.

Bob Smith is saving for the down payment on a new car. If he is very careful with his money, he will have the full down payment in six months. Because his time frame is short, he is deciding between a low-risk saving option and a moderate-risk investment account. What would you recommend for Bob in these circumstances and why

I am trying to save for my daughters education. Right now she is 10 years old and she will be attending school when she is 18. Currently I have $90,000 to invest and I will not be able to contribute anymore through out that time. I estimate that she will need $25000 a year for dormitory costs at an average BC post secondary institution, her costs per semester for school and books will be $10000 and she will have food costs of about $10000 a year. I want to save for a 4 year post secondary program. Using the rule of 70, calculate the average growth rate I would need over that time period to have enough for her to go to school. The average growth rate needs to be 8.75 percent. ***Round your answer to the nearest 2 decimal places***

Your savings account currently has $300,000. You would like to withdraw $40,000 a year for the next 5 years to cover living expenses while you endure a PhD program. If the account is expected to earn an annual rate of 10%, how much will you have left in your account once you finish the program? please break down

A student is trying to determine if an MBA makes sense for his career. He is considering two options for his life. The first option is to attend a school for his MBA for the next three years. The MBA will cost $36, 557.00 per year. After school is over, he will make $82, 513.00 per year. He expects his salary to grow at 5.00% a year for 32.00 years after the MBA. The second option is to stay in his current job. He currently makes $61,069.00 per year. If he does not get an MBA, he expects his salary to grow at 3.00% for the next 35.00 years. The student can earn 9.00% per year on his investments. For simplicity, let's assume all cash flows are at the end of the period (including MBA tuition). What is the present value of the MBA option?

Susan is trying to decide whether or not to attend college during the next 12-week session. She has the following options: 1. Attend college full-time at a cost of $1,200 2. Attend college part-time at a cost of $500 and work part-time earning $1,900 3. Work full-time earning $4,900 What is Susan's incremental profit if she chooses option 3 over option 2?

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      $1,314,002.83

Laura and Tommy want to make sure their newborn can attend college. They have seen estimates that the four-year cost of in-state colleges will be $160,000 in 18 years. They ask their financial advisor (they obviously didn't take this course) how much they need to save in an annuity each year over that time if they invest at a fairly low-risk rate of six percent. What was the advisor's answer (rounded to the nearest dollar)? Hint: remember that discounting is the inverse of compounding. [submit your answer with a numerical value with a comma and no dollar signs]

Your friend in mechanical engineering has invented a money machine. The main drawback of the machine is that it is slow. It takes one year to manufacture ​$700. ​However, once​ built, the machine will last forever and will require no maintenance. The machine can be built​ immediately, but it will cost ​$7,000 to build. Your friend wants to know if he should invest the money to construct it. If the interest rate is 13.0% per​ year, what should your friend​ do?       Question content area bottom Part 1 The NPV of the machine is ​$enter your response here. ​(Round to the nearest​ cent.)                           Part 2 What should your friend​ do? ​(Select the best choice​ below.)     A. Accept the machine because the NPV is equal to or less than​ $0.   B. Reject the machine because the NPV is equal to or greater than​ $0.   C.Reject the machine because the NPV is less than $ 0. Reject the machine because the NPV is less than $0.   D.Accept the machine because…