Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

please show work i need help. ill give thumbs up if correct :) You are about to graduate and expect to get a job with

image text in transcribedplease show work i need help. ill give thumbs up if correct :)
You are about to graduate and expect to get a job with a starting salary of $55,000 (ignore taxes). Assume for simplicity that you receive this entire amount at the end of the year (your paycheck arrives at t=1). You anticipate raises of 2% every year until you retire (so att-2 you get $56,100, for example). Your last year of working will be t-30, Instead of working, you are also considering the University of Oregon's 1-year Masters of Science in Finance (MSF) degree. If you are accepted and enroll: You must pay $37.000 in tuition and fees in full, today. You will earn no money in the upcoming year, t-1. Your new salary, received for the first time at t-2, will be $67,000. This salary will grow at 3% per year until you retire. Your last year of work will still be t=30 (so you work 29 years). Your discount rate is 4%. What is the NPV of doing the MSF

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Personal Finance Turning Money Into Wealth

Authors: Arthur J. Keown

6th Edition

0132719169, 978-0132719162

More Books

Students also viewed these Finance questions