Suppose that you are in the fall of your senior year and are faced with the choice of either getting a job when you graduate or going to law school. Of course, your choice is not purely financial. However, to make an informed decision you would like to know the financial implications of the two alternatives. Let's assume that your alternatives are as follows:
If you take the "get a job" route you expect to start off with a salary of $40,000 per year. There is no way to predict what will happen in the future, your best guess is that your salary will grow at 5 percent per year until you retire in 40 years. As a law student, you will be paying $25,000 per year tuition for each of the 3 years you are in graduate school. However, you can then expect a job with a starting salary of $70,000 per year. Moreover, you expect your salary to grow by 7 percent per year until you retire 35 years later.
Clearly, your total expected lifetime salary will be higher if you become a lawyer. However, the additional future salary is not free. You will be paying $25,000 in tuition at the beginning of each of the 3 years of law school. In addition, you will be giving up a little more than $126,000 in lost income over the three years of law school: $40,000 the first year, $ 42,000 the second year, and $44,100 the third year.
a. To start your analysis of whether to go to law school, calculate the present value of the future earnings that you will realize by going directly to work, assume a discount rate of 3 percent.
b. What is the present value today of your future earnings if you decide to attend law school, assuming a discount rate of 3 percent? Remember that you will be in law school for 3 years before you start to work as a lawyer. (Hint: assume that you are paid at the end of each year so that your first salary payment if you decide to go to law school occurs 4 years from now.)
c. If you pay your law school tuition at the beginning of each year, what is the present value of your tuition, assuming a discount rate of 3 percent?
In: Finance
At the beginning of the baseball season in a particular year, the odds that the New York Yankees will win the American League pennant are 6 to 3.
(a) What are the odds that the Yankees will lose the
pennant?
___________ to __________?
(b) What is the probability that the Yankees will win the pennant?
Express your answer as a decimal.
(c) What is the probability that the Yankees will lose the pennant?
Express your answer as a decimal.
In: Statistics and Probability
what happens to credits in the comeback or Cary forward Year
In: Accounting
A stock will pay a dividend of $9 at the end of the year. It sells today for $101 and its dividends are expected grow at a rate of 10%. What is the implied rate of return on this stock? Enter in percent and round to two decimal places.
In: Finance
1) Robots, Inc. reports the following financial data for the year:
Gross income from sales and services 200k
Wages, cost recovery and other expenses 180k
Dividend income from at least 20% owned Corp. 40k
Net Operating Loss Carryover 20k
Capital Losses 10k
Charitable Contribution Carryover 7k
Current charitable contributions11k
a) What is Robot's charitable contribution deduction?
b) How much of the charitable contribution carryover is used up
c) What is taxable income?
d) What is the dividend received deduction?
In: Accounting
Assume that the probability that a person is killed by coronavirus in a year is, independently, 1/(200 million). Assume that the TR population is 100 million. (5 poi. for each parts)
a. Compute P(3 or more people will be killed by coronavirus next year) exactly.
b. Approximate the probability that found in (a).
c. Approximate the probability that ONO or more people are killed by coronavirus within the first 3 months of next year.
d. Approximate the probability that in exactly 3 of next 10 years exactly 4 people are killed by coronavirus. e. Find the expected number of years, among the next 5, in which 2 or more people are killed by coronavirus.
In: Statistics and Probability
If $30,000 is deposited in a savings account at the end of each year and the account pays interest of 5% compounded annually, what will be the balance of the account at the end of 10 years?
In: Accounting
At the start of the current year, a company paid for the following in cash:
Copyrights, $2,000,000
Equipment, $25,000,000
Goodwill, $4,500,000
Inventory, $1,500,000
Land, $15,000,000
Patents, $1,500,000
Prepaid rent, $500,000
Research and development, $500,000
Supplies, $4,000,000
Trademarks, $1,000,000
It amortizes its intangibles over 10 years. Determine its current year amortization expense.
Group of answer choices
a. $950,000
b. $400,000
c. $500,000
d. $150,000
e. $350,000
2.
Based on the following year-end account balances, what amount would the company report on its balance sheet as intangible assets?
| Buildings and Equipment | $35,000,000 |
| Accumulated depreciation | 5,000,000 |
| Copyrights | 2,400,000 |
| Patents | 10,000,000 |
| Research and development | 12,000,000 |
Group of answer choices
a. $12,400,000.
b. $5,000,000.
c. $10,000,000
d. $17,400,000.
e. $24,400,000.
In: Accounting
This is the time in the year where people are encouraged to receive a vaccination for influenza (flu). Flu in humans is caused by the influenza virus of which there are several strains. Strains A and B are the most important in causing flu in humans. Since strain A has been studied more, and A and B are similar, use strain A for your answers.
How does the flu virus enter human cells? This question refers to entering individual cells rather than entering the body.
How are the viral genes expressed? How does the virus get its own genes transcribed and translated in the host cell?
How do new progeny viral particles leave the host cell?
In: Biology
"If $500000 is invested in a certain business at the start of the year, the investor will receive $130000 at the end of each of the next 5 years. What is the present value of this business opportunity if the interest rate is 5% per year? Note: Express your answers in strictly numerical terms. For example, if the answer is $500, write enter 500 as an answer."
In: Finance