Reference no: EM131169237
An engineering student will graduate this year with a BS degree at the age of 26. He expects to make $ 60,000/ year for the rest of his career. He is considering his options for further study for an MS degree, where he can make an additional $ 10,000 per year. He is also thinking of retiring at the age of 55 or 66 years.
Option 1. Enroll in a master’s degree program and pay full tuition at $ 40,000 and graduate in one year.
Option 2. Enroll in a master’s degree program with a teaching assistantship, pay no tuition at all, and graduate in two years.
Option 3. Enroll in a master’s degree program and pay full tuition at $ 40,000 and graduate in one year; borrow the money with a long-term student loan to be paid out in 10 years at $ 5000 per year starting at the end of the first year after he receives his MS degree.
Make a decision table based on present worth analysis (PW = PV). The table should include the baseline (no master’s) and the three master’s options. Assume an inflation rate of 5 percent. Make a snapshot of the four alternatives after five years and after a lifetime of work retiring at either 55 or 66 years. Assume no tax consequences. Please show all of your calculations in details. Put your results in a matrix of three rows of years of work and four columns (baseline and choices 1, 2, and 3)
The firm would make more money by shutting down
: Morgan company’s marginal cost curve is: MC = 4+3Q Where MC is marginal cost and Q is the number of units of its product. The price of a unit of its product is $3. A consultant hired by the company argues based on the evidence, the firm would make mo..
|
In supply and demand theory
: In supply and demand theory, an increase in consumer income for a normal good will:
|
About inflation and deflation
: Why is it so important for a business to know about inflation and deflation? What do these terms mean to a business and a consumer? What would be the effect on each of these during a period of inflation?
|
Reimbursement and consumer copayment schemes
: Which of the following reimbursement and consumer copayment schemes would have the greatest and lowest likelyhood of producing high-cost, low-benefit medicine? Be sure to explain your answers and complete each section.
|
Make decision table based on present worth analysis
: An engineering student will graduate this year with a BS degree at the age of 26. He expects to make $ 60,000/ year for the rest of his career. Enroll in a master’s degree program and pay full tuition at $ 40,000 and graduate in one year. Make a deci..
|
Determine which markets to target short versus long term
: After carefully reading the case study, Smart Cookie, answer the following questions in a 5-7 page paper with support from a minimum of two external sources.Apply SWOT, Porter’s Five Forces, or the BCG Matrix to analyze Kraft’s strategic plan to expa..
|
Use of fiscal policy or monetary policy
: In the midst of a recession, if you could choose only one option to stimulate the economy, would you recommend the use of fiscal policy or monetary policy? [Your response should include an explanation of the pros and cons of each policy in order to s..
|
The main difference in the economic model
: We started the course with a look at NBER data on business cycles. Specifically, we saw prior to 1945 that recessions lasted on average about 2 years, and after 1945 the average recession was cut in half (to just under 1 year). Based on what you’ve l..
|
Spend on the lawyer to achieve the efficient outcome
: Suppose your neighbour likes to repair motorcycles in his front yard during evenings and on weekends, and he earns $400 per week from this work. If your neighbour has a right to operate this business, what is the efficient outcome? If you have a righ..
|