Question - Personal Investment Analysis

Assignment Help Accounting Basics
Reference no: EM132562849

Question - Personal Investment Analysis

Find of the cost of a bachelor's degree at the university of your choice assume additional costs of $16,000 for an additional fifth year of education to get Master's degree. Assume that all tuition is paid at the beginning of the year. A student considering this investment must evaluate the present value of cash flows from possessing a graduate degree versus holding only the undergraduate degree. Assume that the average student with an undergraduate degree is expected to earn an annual salary of $55,000 per year (assumed to be paid at the end of the year) for 10 years. Assume that the average student with a graduate Masters degree is expected to earn an annual salary of $76,000 per year (assumed to be paid at the end of the year) for nine years after graduation. Assume a minimum rate of return of 10%. Determine the net present value of cash flows from an undergraduate degree. Use the present value table provided in this chapter 26. Determine the net present value of cash flows from a Masters degree, assuming that no salary is earned during the graduate year of schooling. What is the net advantage or disadvantage of pursuing a graduate degree under these assumption?

Reference no: EM132562849

Questions Cloud

Discuss ethical dilemma related to legalizing marijuana use : In a two-page essay, utilize a minimum of three of the terms defined in this unit to discuss the questions posed in the video below, which discusses.
Find what is the cost of the building : What is the cost of the Building? xyz Company started construction on a building at the beginning of the current year and completed
Describe at least two types of standard costs : Question - Cost and Pricing. Describe at least two types of standard costs your selected company might use
Compute the amount of accumulated depreciation : If machine 2 had been purchased on May 1 instead of January 1, what would be the depreciation expense for this machine in (1) 2008 and (2) 2009?
Question - Personal Investment Analysis : Question - Personal Investment Analysis. What is the net advantage or disadvantage of pursuing a graduate degree under these assumption
Describe the contemporary health issue : Describe the contemporary health issue that you selected as your introduction. Explain whether or not the issue is influenced by lifestyle choices.
Calculate Anita break-even point without the expansion : Question - Where Do We Break Even? Calculate Anita's break-even point without the expansion. Would you recommend that Anita expands her business? Explain
MKT002 Marketing New Products Assignment : MKT002 Marketing New Products Assignment Help and Solution, Universal Business School Sydney -Assessment Writing Service
Schedule of cash collections by month for the period : Schedule of cash collections by month for the period July to September. Production budget by month for the period July to September.

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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