Indifferent between acquiring and not acquiring training

Assignment Help Financial Management
Reference no: EM131563115

You are a college sophomore who fellow classmates in your free time for extra money. With your current? abilities, you can earn ?$2,400 per year for the next three years ? However, suppose you have the option of enhancing your ability to by acquiring special training for ?$6,000. After paying the? fee, the training takes two years to? complete, but at the end of this training? period, you can earn ?$13,700 during the third year. While training in your free? time, you are unable to continue. At what discount rate would you be indifferent between acquiring and not acquiring the? training? You would be indifferent if the discount rate were %

Reference no: EM131563115

Questions Cloud

Calculate the net present value and internal rate of return : Calculate the net present value and internal rate of return for the investment project.
How large will your annual payments be : To do this, you take out a $175000 30-year,12 percent mortgage. How large will your annual payments be?
What is its operating ROA : A firm has an ROE of 4%, a debt/equity ratio of 0.4, a tax rate of 35%, and pays an interest rate of 5% on its debt. What is its operating ROA?
Find the radius of the circular part : An architect is designing a Norman window (a semicircular part over a rectangular part) as shown in Fig. If the area of the window is to be 16 ft2.
Indifferent between acquiring and not acquiring training : At what discount rate would you be indifferent between acquiring and not acquiring the? training?
Quality decorator lamps in plant located in eastern tenness : Baryla Inc. manufactures high quality decorator lamps in a plant located in eastern Tennessee.
Write out a passage from one of the four renaissance prose : Write out a passage from one of the four Renaissance prose writers for this unit, and explain how that passage represents a clear break from the Middle Ages.
Research online and make a list of ten characteristicts : Research online and make a list of 10 characteristicts of a good listener and a list of 10 characteristics of a good speaker.
How many poles are being placed each kilometer : An electric utility company is placing utility poles along a road. It is determined that five fewer poles per kilometer would be necessary if the distance.

Reviews

Write a Review

Financial Management Questions & Answers

  What are free cash flows generated by project each other

Company A is trying to determine whether to replace an existing asset. The proposed asset has a purchase price of $50,000 and has installation costs of $3,000. The asset will be depreciated over its five year life using the simplified straight-line m..

  Describe how the internal rate of return

Describe how the Internal Rate of Return is calculated and describe the information this measure provides about a sequence of cash flows. What is the IRR criterion decision rule? What is the relationship between IRR and NPV and are there any situatio..

  What is present value of these cash flows

Eulis Co. has identified an investment project with the following cash flows. what is the present value of these cash flows?

  What is the present value of this annuity stream

Your company just signed a 20-year lease for a new office. The lease requires that your firm pay $1,000 at the end of each month over the life of the lease. If the current annual rate is 9 percent, what is the present value of this annuity stream?

  Complement to other sources of retirement

You currently have 25 years and want to retire at the age of 65 years. As a complement to other sources of retirement, you could deposit $ 3,000 at the end of each year in an IRA. This financial instrument would earn 9.75% during the next 40 years. D..

  What is the prevailing interest rate

What is the PV of a perpetuity paying $30 each month, beginning next month, if the annual interest rate is a constant effective 12.68% per year?

  Under the net present value method

Oregon Forest Products will acquire new equipment that falls under the five-year MACRS category. The cost is $240,000. If the equipment is purchased, the following earnings before depreciation and taxes will be generated for the next six years. Calcu..

  What will jetison need to save each month

How much should he put away each month to have the equivalent of $500,000 in 20 years if the interest he can earn is 5%? If the interest rate changes to 3%, what will Jetison need to save each month?

  Old project with a initial investment

Calculate the NPV for a 30 year old project with a initial investment of $35,000 and a cash inflow of $8,000 per year. Assume the firm has an opportunity cost of 13%.

  What does the price range imply about the amount of dividend

Develop a set of financial ratios that will provide Blue Street Advisors with useful information in the evaluation and comparison of National Property Trust with other REITs.

  Prepare flexible budget for january production costs

Normal Volume per month is 40,000 direct labor hours. Beal’s January 2004 budget was based on normal volume. Prepare a flexible budget for January 2004 production costs, based on actual production of 7,800 units.

  Based on preliminary project estimates

Aria Acoustics, Inc. (AAI), projects unit sales for a new seven-octave voice emulation implant as follows: Production of the implants will require $1,800,000 in net working capital to start and additional net working capital investments each year equ..

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!

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