Reference no: EM131893938
Suppose that you enter a one year training program in year 0. Tuition, fees, and other out of pocket expenses for the program are $10,000. If you had not entered the training program. you would have earned $20,000 during year 0. Because you are busy with the training program in year 0, you only earn $5000 that year. Without the training, you would also have earned $20,000 in years 1,2, and 3. With the training, you will earn $50,000 in year 1, $60,000 in year 2, and $70,000 in year 3. You would retire in year 4 whether or not you took the training. Assume the interest rate is 10%.
a) Find the net present value of the training program. Show your work.
b) Is the training program worth doing, in financial terms? Explain.
c) how would an increase in the interest rate affect the net present value of participating in this training program?
d) Suppose you were planning on participating in the labor force for more than 3 years after completing the training. How would that impact the net present value of the training?
e) So far, in this problem, we have been assuming that the post-training wages are absolutely certain. Suppose the post-training earnings given above are just average values of earnings in each post-training year (and that the actual earnings in any year is a random variable). How would this impact the value of the training program.
2. Why are employers more apt to subsidize specific training than general training?
3. Would employers be most apt to lay off workers with much specific training at the first sign of demand weakening or least apt to lay off such workers? Explain your reasoning.
Insufficient social security for a good quality of life
: How could I phrase my thesis to sound more persuasive with the following subject matter: the past economic decline of Vietnam veterans, post-war economy
|
Maintain a certain level of food
: Why sustainability is an important topic to maintain a certain level of food, employment, industry, economy and wast management.
|
Find the cost of levered equity for dell
: Using the unlevered cost of capital for Dell above, find the cost of levered equity for Dell (assuming that Dell’s capital structure D/E will remain fixed).
|
Society and the division of the power and perspective
: Federalism has advantages and disadvantages however, federalism works effectively and plays an important role in our society and the division of the power
|
Find the net present value of the training program
: Find the net present value of the training program. Show your work. Is the training program worth doing, in financial terms? Explain.
|
Describe the major components of contingency planning
: Describe the major components of contingency planning. How does an organization develop an incident response process? Why is incident response important?
|
The clash of beliefs and values between cultural groups
: For this assignment select two countries or cultural groups that are currently or have historically been in conflict.
|
Common causes of communication apprehension
: What effect do common causes of communication apprehension noted in the reading (e.g., heredity, learned apprehension, skill deficit, etc.) have on this?
|
Identify job requirements for your organization
: Identify three (3) job requirements (e.g., needed certifications, previous work experience, external influences, etc.) that could apply to your chosen scenario.
|