Present value of obtaining a master degree

Assignment Help Business Economics
Reference no: EM132001261

Jill is considering getting a masters degree in dance. If she does, she will spend $40,000 on tuition and books to get a college education (during the first time period), she will spend $130,000 on tuition and books to get a master's degree (during the second time period), and her degree will earn her $900,000 during the remainder of her work-life (during the third time period). If she does not go to school, she will earn $70,000 a year for the first two periods and $500,000 for the third period. Jill's discount rate is11%.

a) Approximately what is Jill's present value of obtaining a master's degree?

b) What is Jill's present value of not obtaining the masters degree?

c) Will she choose to go to school? why?

Reference no: EM132001261

Questions Cloud

Making showtime-history bundle available : Suppose Time Warner could sell Showtime for $9, and the History channel for $8, while making Showtime-History bundle available for $13.
What is the tax basis of each of the stocks : T exercised 60 rights and sold the remaining 40 rights for $70 per right. What is the tax basis of each of the stocks acquired with the 60 rights
Determination of the asset allocation of portfolio : What role does a client’s risk tolerance play in the determination of the asset allocation of a portfolio?
Rapid development of technology and globalisation : Karl Marx believed that the structure of capitalism at his time was doomed to fail. In last century, during the Great Depression, combining with Keynes's
Present value of obtaining a master degree : a) Approximately what is Jill's present value of obtaining a master's degree?
Company recently paid dividend on their common stock : Amen company inc recently paid a dividend on their common stock. The amount of the dividend was 5.75. (Per share)
Recommend to reduce the us debt : What types of economic policy would you recommend to reduce the U.S. debt? Why?
How much loss may gray corporation recognize : Mary and Jane, unrelated taxpayers, hold Gray Corporation's stock equally. How much loss may Gray Corporation recognize on the distribution of the land to Jane
Bond prices and quantity of bonds sold on the graph : Show the decreasing desire to buy U.S. government bonds. Show and label what happens to bond prices and quantity of bonds sold on the graph.

Reviews

Write a Review

Business Economics Questions & Answers

  Economics assignment

This document contains various important questions and their appropriate answers in the subject field of Economics.

  Demand and supply curves

Economics is the study of the principles governing the allocation of scarce means among competing ends when the objective of the allocation is to maximize the attainment of the ends.

  Long-run perfectly competitive equilibrium for the firm

Evaluate Government intervene and correct this situation?(a) Explain the concept of a concentration ratio. A rise in the price of magarine Explain the impact of external costs and external benefits on resource allocation long-run perfectly c..

  Supply and demand diagrams

Explain each of the following using supply and demand diagrams,  With the use of a graph, explain how these two programs affect cigarette consumption and the price of cigarettes.

  Case study: fisher-price toys

The case study of the Fisher-Price Toys, Inc., a popular case in basic economics and management from the prestigious Harvard Business School.

  Draw the production possibility curve

Draw the production possibility curve and a. Define consumer surplus and producer surplus.

  Tax revenue

The Australian government administers two programs that affect the market for cigarettes

  Maximize total welfare

How many tickets to sell to maximize total welfare.

  Difference between the cv and the ev

The change in consumer surplus (?CS) is not "theoretically" justifiable like the CV and EV but it continues to be the most widely used measure of consumer welfare change. Explain how this can be reconciled

  Depict von neumann-morgenstern utility index u in a diagram

Depict the von Neumann-Morgenstern utility index u in a diagram

  What is the market solution

What is the market solution (market price and quantity) and What is the total surplus of the society under the market solution

  Calculate gross national product and net national product

Calculate gross national product and net national product

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