User Account

All Pages

Discount rate between periods

Assignment Help Business Management
Reference no: EM132285616

Debbie is about to choose a career path. She has narrowed her options to two alternatives. She can either become a marine biologist or a concert pianist. Debbie lives two periods. In the first, she gets an education. In the second, she works in the labor market. If Debbie becomes a marine biologist, she will spend $15,000 on education in the first period and earn $472,000 in the second period. If she becomes a concert pianist, she will spend $40,000 on education in the first period and then earn $500,000 in the second period.

a. Suppose Debbie has a 5 percent discount rate between periods. Which career will she pursue? What if she had a 15 percent discount rate? Will she choose a different option? Why?

Suppose musical conservatories raise their tuition so that it now costs Debbie $60,000 to become a concert pianist. What career will Debbie pursue if the discount rate is 5 percent?

Reference no: EM132285616

Questions Cloud

Calculate the pw and aw of your 3-year cash flow : IE201 Project : Calculate the PW and AW of your 3-year cash flow using interest rate scenarios of 1%, 2%, 3%, 4% and 5%.
What is the annual rate of return associated : a. What is the annual rate of return associated with the 16th year of education?
Discuss about the information security risk analysis : Information security risk analysis on the cyber attack on JP Morgan Chase and co. 5 pages of detailed report. The response must be typed.
Model the process for damage compensation : Model the process for damage compensation. Use pools and lanes where needed. Make sure to include business objects and annotations where appropriate.
Discount rate between periods : Suppose Debbie has a 5 percent discount rate between periods. Which career will she pursue? What if she had a 15 percent discount rate?
Long run aggregate supply curves : For each of the following events, explain the effect if any, on the position of the short and long run aggregate supply curves and the aggregate demand curves.
How the knowledgor theories of course have been applied : Assignment: Provide a reflection of at least 500 words (or 2 pages double spaced) of how the knowledge, skills, or theories of this course have been applied.
What is the present value of owning the equipment : What is the present value of owning the equipment? What is Lewis’s present value of leasing the equipment?
How do companies advertise their products when they wish : Discuss the major provisions of the Dodd-Frank Consumer Financial Protection Act. Does it help increase a consumer's protection?

Reviews

Write a Review

Business Management Questions & Answers

  Caselet on michael porter’s value chain management

The assignment in management is a two part assignment dealing 1.Theory of function of management. 2. Operations and Controlling.

  Mountain man brewing company

Mountain Man Brewing, a family owned business where Chris Prangel, the son of the president joins. Due to increase in the preference for light beer drinkers, Chris Prangel wants to introduce light beer version in Mountain Man. An analysis into the la..

  Mountain man brewing company

Mountain Man Brewing, a family owned business where Chris Prangel, the son of the president joins. An analysis into the launch of Mountain Man Light over the present Mountain Man Lager.

  Analysis of the case using the doing ethics technique

Analysis of the case using the Doing Ethics Technique (DET). Analysis of the ethical issue(s) from the perspective of an ICT professional, using the ACS Code of  Conduct and properly relating clauses from the ACS Code of Conduct to the ethical issue.

  Affiliations and partnerships

Affiliations and partnerships are frequently used to reach a larger local audience? Which options stand to avail for the Hotel manager and what problems do these pose.

  Innovation-friendly regulations

What influence (if any) can organizations exercise to encourage ‘innovation-friendly' regulations?

  Effect of regional and corporate cultural issues

Present your findings as a group powerpoint with an audio file. In addition individually write up your own conclusions as to the effects of regional cultural issues on the corporate organisational culture of this multinational company as it conducts ..

  Structure of business plan

This assignment shows a structure of business plan. The task is to write a business plane about a Diet Shop.

  Identify the purposes of different types of organisations

Identify the purposes of different types of organisations.

  Entrepreneur case study for analysis

Entrepreneur Case Study for Analysis. Analyze Robin Wolaner's suitability to be an entrepreneur

  Forecasting and business analysis

This problem requires you to apply your cross-sectional analysis skills to a real cross-sectional data set with the goal of answering a specific research question.

  Educational instructional leadership

Prepare a major handout on the key principles of instructional leadership

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +91-977-207-8620

Phone: +91-977-207-8620

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd