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Can you please help me answer these questions If you choose to go to a college, which is the option (a), then your career path

Can you please help me answer these questions

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If you choose to go to a college, which is the option (a), then your career path and cash-ows will be as follows. The school starts today. The total cost of getting a degree is $55,00 and needs to be paid in full today. You need ill four years to get a BBA degree. You will work at Houston Awesome Investments aer graduation, starting in 4 years. Houston Awesome Investments pays $68,0001'year for 41 years. You will get your rst paycheck in a year after you work there for a year. You will receive 41 annual paychecks in total. Prat-tr There are additional assumptions you should make since this is a real world problem. 1. The firms will persist forever and your employment is guaranteed until your retirement- 2. Your decision on the college education is irreversible and you are stuck with the chosen career path until your retire. (A) Compute \"the (present) value when you start the job\" of 41 annual paychecks from Houston Awesome Investments when you choose the career path (a) going to Bauer College. (Hint: The present value can be defined at any date, not just today. Imagine you take a time machine and go to the future, 4 years from now, and compute the present value there. Here, you can use the formula for an annuity because the timing of the rst cash ow is consistent with the formula.) 1. $1,830,365.28 2. $1,350,365.23 3. $1,870,365.28 4. $1,390,365.23 5. $1,910,365.23 (B) Compute \"the present value as of today\" of the career path(a) going to Bauer College. Hint: Remember 'present value of present value\". Now you can forget about the actual cash-ows from the paychecks. Instead, you can assume there is only one hypothetical cash-ow in 4 years from now whose amount is the same as your answer for the question ( A). Therefore, the present value of the career path (a) is equal to the present value (as of today) of such hypothetical cash- ow (in 4 years from now) that you computed for the question ('A l. l. $1,?44,405.32 2. $1,?46,405.32 3. $1,?48,45.32 4. $1,150,405.32 5. $1,762,405.32

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