our dream is to take up a job that basically provides wages that
has a present value of at least $2,000,000 today (Ignoring taxes).
Other words, you want the present value of all net future earning
to be greater than 2 million. You want to feel like a millionaire
today!
You just completed your master of science in biochemistry and a
large bio-medical company wants to hire you. Their offer is as
follows: Annual salary of $200,000 starting one year from today.
However, they will only offer a contract for twenty years, and they
will not guarantee if they can renew your contract. Also, they want
you to complete an MBA in your second year and third year while
working with them (t=2 and t=3). You must pay for that education
(they do not cover education expenses). However, since your first
annual paycheck is one year from today (t=1), they are willing to
give a contract signing bonus of $100,000 today (if you sign the
contract today).
You did some research and realized that you can complete your MBA
with Sam Houston State University with a cost of $15,000 per year
for two years. You also assume a conservative interest rate of 4%
for this calculation. What is the NPV of these cash flows.
(Note: 1.5X credit)
|
$2,590,861.98 |
||
|
$2,790,861.98 |
||
|
$2,818,065.27 |
||
|
$2,788,065.27 |
||
|
$3,970,000.00 |
help me please!!!
In: Finance
The publisher Elsevier uses mixed-bundling pricing strategy. The
publisher sells a university access to a bundle of 930 of its
journals for $1.7million for one year. It also offers the journals
separately at individual prices. Because Elsevier offers the
journals online (with password access), universities can track how
often their students and faculty access journals and then cancel
those journals that they seldom read.
Suppose that a publisher offers a university only three journals –
A, B and C – at the unbundled, individual annual subscription
prices of pA = $1,600, pB = $800, and pC = $1,500. Suppose a
university’s willingness to pay for each of the journals is vA =
$2,000, vB = $1,100, and vC = $1,400.
a) If the publisher offers the journals only at the individual subscription prices, to which journals does the university subscribe?
b) Given these individual prices, what is the highest price that the university is willing to pay for the three journals bundled together?
c) Now suppose that the publisher offers the same deal to a second university with willingness to pay vA = $1,800, vB = $1,000, and vC = $2,100. With the two universities, calculate the revenue-maximizing individual bundle prices.
In: Economics
Consider an individual who purchases two goods. Let ? denote
the
quantity of good 1 that this person buys, and let ? denote the
quantity of good 2 that
this person buys. The income earned by this individual provides
money in the
amount ?=540 which this person can use to spend on these two goods.
The price of
good 1 is ?! = 5 and the price of good 2 is ?" = 5. This person’s
happiness is
determined by the utility function ?(? , ? ) = 10x^.5 x^.5
a. What type of the utility function is the consumer facing in this
question?
In: Economics
Incremental
Year After-tax Earnings
1 $15,000
2 20,000
3 23,000
4 26,000
5 30,000
6 35,000
7 40,000
8 50,000
9 60,000
10 70,000
You have a discount rate of 10.0%. Lastly, in order to get to/from class, you
will need to spend more on transportation, and you will also have to eat
several meals a week at fast food restaurants. These incremental net
working capital costs will be $3,000 for the year. Your on-going fixed
overhead costs—for rent, clothes, insurance, food, etc.—are $20,000 per
year.
USING THE PRECEDING INFORMATION, PLEASE ANSWER THE
FOLLOWING QUESTIONS:
In: Accounting
1,Which of the following persons is NOT liable for Canadian income tax under Part I of the Income Tax Act?
|
Pheap Chom, an individual who has resided in Canada for the past 15 years. |
||
|
Chom Incorporated, a Canadian resident corporation. |
||
|
Phon Im, a resident of the United States who earns employment income in Canada. |
||
|
Bunly Im, a resident of the United States who earns interest income in Canada. |
2
Which of the following is an argument in favour of a regressive tax system over a progressive tax system?
|
Provides vertical equity because higher income earners pay higher taxes. |
||
|
Less complex than a progressive tax system. |
||
|
Provides more stability by shifting taxpayers to a lower tax bracket during times of economic downturn. |
||
|
Provides horizontal equity because taxpayers pay the same amount of tax on the same level of income. |
3
Which of the following types of income earned by a non-resident individual is NOT subject to Canadian income tax under Part I of the Income Tax Act?
|
Employment income earned in Canada |
||||||||||||||||||||||||||||||||
|
Business income earned in Canada |
||||||||||||||||||||||||||||||||
|
Rental income earned in Canada |
||||||||||||||||||||||||||||||||
|
Income from the disposition of Canadian real estate 4 Of the following statements about tax credits, which one is correct?
|
In: Accounting
You are 20 years old and have completed your BBA and want to pursue further education but you don’t want to take money from your father. Your plan is to start working and earn enough money so that you can finance your degree on your own and get yourself enrolled in five years’ time. You estimate that the annual cost of doing an MBA 5 years from today will be PKR 400,000 and the program will be two years long. You will need the money at the beginning your program so that you are not worried about how to clear your dues during your studies. Luckily you go for a job interview and they hire you and you start working at a salary of PKR 25,000. So you decide that 50% you will deposit in a saving account at a 10% rate with monthly compounding for your further studies and the remaining amount you will use for your daily expenses.
4. If you are given an option to invest at the 10% saving rate with monthly compounding or 10.5% semiannual compounding, which would you chose? Explain your answer.
Important note: *kindly do make sure that you have read the question properly because there is a confusion in question regarding Its 2 years MBA or 5 years MBA. The calculation is based on the time period of MBA program*.
In: Finance
'Net foreign factor income' in the national income
accounts refers to the difference between
A) the income Americans gain from supplying resources abroad and
the income that foreigners earn by supplying resources in the
U.S
B) the value of the products sold by Americans to other nations and
the value of products bought by Americans from other nations
C) the value of investments that Americans made abroad and the
value of investments made by foreigners in the U.S
D) the income earned by the Americans in the US minus the income
earned by foreigners in the US
In: Economics
Suppose that, after completing your MBA, you are offered a job as a management consultant in a firm specialized in engagement and productivity. One of your first assignments is related to the education sector. specifically working with a large university. The overall goal of the project you're managing is to identify and enhance motivational factors of students in a well-known university. The purpose is to help improve student motivation and learning engagement to help students reach their goal of degree completion. Because you have recently finished your studies, you feel you have a good understanding of the elements that motivate and de-motivate students.
In: Operations Management
1. Jim, a US individual who qualifies as a real estate professional, purchases a certain rental real estate property in 2014 and leases it out producing a taxable loss each year from 2014-2017. Jim has no other passive income during any of these years. He sells the real estate in 2017 at a gain. Jim can deduct the taxable losses as ordinary deductions generated from her rental activity in 2017, the year that he sold the rental real estate, and will recognize capital gain income on the sale under Section 1231.
True False
2. Passive losses that are limited on an individual’s income tax return in one year can be carried forward and deducted in future tax years.
True False
3. When condominiums are sold in the ordinary course of business by an individual, the income earned from the sale of the condo will be taxed as the capital gain tax rate.
True False
4. Jane holds land with a tax basis of $100,000, but a fair market value of $500,000 (the land appreciated over several years). Jane donates the land to a qualified charitable organization. Jane must recognize the $400,000 gain and will be allowed to take a $500,000 charitable deduction for the value of the contribution.
True False
5. The requirements to treat a transaction as a nontaxable Section 1031 exchange includes that the property must be held for investment, for productive use in a trade or business or as dealer property held for sale to customers in the ordinary course of a trade or business.
True False
6. When property is inherited, the tax basis carries over to the heirs.
True False
In: Accounting
1. We are interested in estimating the proportion of students at a university who smoke. Out of a random sample of 200 students from this university, 40 students smoke.
(1) Calculate a 95% confidence interval for the proportion of students at this university who smoke and interpret this interval in context.
(2) If we wanted the margin of error to be no larger than 2% at a 95% confidence level for the proportion of students who smoke, how big of a sample would we need?
In: Statistics and Probability