subject
Business, 01.03.2021 19:40 trenton16

A prospective MBA student earns $50,000 per year in her current job and expects that amount to increase by 9% per year. She is considering leaving her job to attend business school for two years at a cost of $50,000 per year. She has been told that her starting salary after business school is likely to be $105,000 and that amount will increase by 10% per year. Consider a time horizon of 10 years, use a discount rate of 10%, 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

ansver
Answers: 3

Another question on Business

question
Business, 21.06.2019 20:50
Your goal is to have $2,000,000. you have a total of $40,000 today. you invest the $40,000 and want to add to it each month. at 10% annual interest, how much do you need to invest each month in order to bring the total up to $2,000,000 30 years from now?
Answers: 2
question
Business, 21.06.2019 23:30
Select the correct answer. the word intestate means that a person has died with or without a will?
Answers: 1
question
Business, 22.06.2019 03:20
The treasurer for pittsburgh iron works wishes to use financial futures to hedge her interest rate exposure. she will sell five treasury futures contracts at $139,000 per contract. it is july and the contracts must be closed out in december of this year. long-term interest rates are currently 7.30 percent. if they increase to 9.50 percent, assume the value of the contracts will go down by 20 percent. also if interest rates do increase by 2.2 percent, assume the firm will have additional interest expense on its business loans and other commitments of $149,000. this expense, of course, will be separate from the futures contracts. a. what will be the profit or loss on the futures contract if interest rates increase to 9.50 percent by december when the contract is closed out
Answers: 1
question
Business, 22.06.2019 05:50
Which is one solution to levy the complexity of the global matrix strategy with added customer-focused dimensions?
Answers: 3
You know the right answer?
A prospective MBA student earns $50,000 per year in her current job and expects that amount to incre...
Questions
question
Social Studies, 21.01.2021 01:10
question
Mathematics, 21.01.2021 01:10
question
Mathematics, 21.01.2021 01:10
Questions on the website: 13722363