I am trying to find out the NPV of my University degree. I already got some data(red numbers) that the question asks me to consider, however I am still confused with some factors such as pension, opportunity cost and discount rate.
L DUBILE I would like you to utilize the concepts we have discussed to determine the Net Present Value of your degree here at University. Additionally, you may want to further motivate yourself by calculating the degree of effort you are putting into this degree (ie hours expended each year), and calculating an hourly wage you are receiving for this effort. This can be done individually or in groups up to 3. Things your submission should consider: State - Cost of Tuition, Books, Added Living Costs State - Opportunity cost of being here. State - Number of hours per year you work at University in obtaining your degree. State - Number of years you will spend at Acadia? 6% interest rate. Assume you will start work immediately after graduation in either case, whether you graduate or not. State what your starting salary will be with your degree versus without a degree. Career - 35 years after you graduate Starting Salary will grow by 5% per year when you graduate. Salary will grow by 3% per year if you did not start or finish your degree. You will receive a pension equal to 70% of what you made on the last (35) year of your career, forever with no growth. After 25 years of retirement, you die, and your pension dies with you.. State - Cost of Tuition, Books, Added Living Costs -$83536+$8000+$24000-$115536 State - Opportunity cost of being here. -Cost on living: $3000 per year State - Number of hours per year you work at University in obtaining your degree. State -Number of years you will spend at University2-4 years 6% interest rate. Assume you will start work immediately after graduation in either case, whether you graduate or not. State what your starting salary will be with your degree versus without a degree -$36000 per year with the degree -S27000 per year without the degree Career = 35 years after you graduate Starting Salary will grow by 5% per year when you graduate. Salary will grow by 3% per year if you did not start or finish your degree. You will receive a pension equal to 70% of what you made on the last (35th) year of your career, forever with no growth. After 25 years of retirement, you die, and your pension dies with you. L DUBILE I would like you to utilize the concepts we have discussed to determine the Net Present Value of your degree here at University. Additionally, you may want to further motivate yourself by calculating the degree of effort you are putting into this degree (ie hours expended each year), and calculating an hourly wage you are receiving for this effort. This can be done individually or in groups up to 3. Things your submission should consider: State - Cost of Tuition, Books, Added Living Costs State - Opportunity cost of being here. State - Number of hours per year you work at University in obtaining your degree. State - Number of years you will spend at Acadia? 6% interest rate. Assume you will start work immediately after graduation in either case, whether you graduate or not. State what your starting salary will be with your degree versus without a degree. Career - 35 years after you graduate Starting Salary will grow by 5% per year when you graduate. Salary will grow by 3% per year if you did not start or finish your degree. You will receive a pension equal to 70% of what you made on the last (35) year of your career, forever with no growth. After 25 years of retirement, you die, and your pension dies with you.. State - Cost of Tuition, Books, Added Living Costs -$83536+$8000+$24000-$115536 State - Opportunity cost of being here. -Cost on living: $3000 per year State - Number of hours per year you work at University in obtaining your degree. State -Number of years you will spend at University2-4 years 6% interest rate. Assume you will start work immediately after graduation in either case, whether you graduate or not. State what your starting salary will be with your degree versus without a degree -$36000 per year with the degree -S27000 per year without the degree Career = 35 years after you graduate Starting Salary will grow by 5% per year when you graduate. Salary will grow by 3% per year if you did not start or finish your degree. You will receive a pension equal to 70% of what you made on the last (35th) year of your career, forever with no growth. After 25 years of retirement, you die, and your pension dies with you
