16. You are thinking about going to graduate school to earn a master's degree, which you hopewill allow you to earn more money. Which of the following is NOT an incremental cash flowassociated with your decision to extend your schooling versus going into the workforce whenyou finish your undergraduate degree?A) the cost-of-living expenses, such as rent and food, while you are in graduate schoolB) the cost of tuitionC) the lost income you could have earned by working rather than staying in schoolD) the cost of books and other supplies required for your graduate studies

Incremental cash flow is the extra cash flow related to the given opportunity about which the…

will allow you to earn more money. Which of the following is NOT an incremental cash f associated with your decision to extend your schooling versus going into the workforce wi you finish your undergraduate degree? A) the cost-of-living expenses, such as rent and food, while you are in graduate school B) the cost of tuition C) the lost income you could have earned by working rather than staying in school D) the cost of books and other supplies required for your graduate studies

will allow you to earn more money. Which of the following is NOT an incremental cash f associated with your decision to extend your schooling versus going into the workforce wi you finish your undergraduate degree? A) the cost-of-living expenses, such as rent and food, while you are in graduate school B) the cost of tuition C) the lost income you could have earned by working rather than staying in school D) the cost of books and other supplies required for your graduate studies

Personal Finance

13th Edition

ISBN:9781337669214

Author:GARMAN

Publisher:GARMAN

Chapter4: Managing Income Taxes

Section: Chapter Questions

Problem 3FPC

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Scenario 2:Saving for collegeYou are a freshman in high school andhave your eye on a college degree. Butcollege is expensive, especially sincethe costs include tuition, food, livingexpenses, travel and books.What financial information do youneed?What financial decision-makingstrategies can you use?(Cost comparison, cost-benefitanalysis, calculating future expensesor budgeting?)
As a recent graduate with an associate degree in Business, you are trying to determine if getting a Bachelor’s degree is worth the money. To help make the decision, you should evaluate the present value of the cash flows from possessing an associate degree versus possessing a bachelor’s degree. Researching current tuition fees and employment data has yielded the following information: * Annual Tuition and costs for a CSU: $10,000 (Assume this covers all expenses: tuition, books, etc.) * Time to Compete: 2 years * Average Salary with associate degree only: $35,000 * Average Salary with bachelor’s degree: $55,000 Assume you will earn the above salaries for ten years. Use the present value tables to complete the following: 1. Determine the Net Present Value of the Cash Flows from the associate degree; there is no tuition cost as you have already completed the degree. 2. Determine the Net Present Value of the Cash Flows from the bachelor’s degree; remember to account for the “cost” of…
As a recent graduate with an associate degree in Business, you are trying to determine if getting a Bachelor’s degree is worth the money. To help make the decision, you should evaluate the present value of the cash flows from possessing an associate degree versus possessing a bachelor’s degree. Researching current tuition fees and employment data has yielded the following information: * Annual Tuition and costs for a CSU: $10,000 (Assume this covers all expenses: tuition, books, etc.) * Time to Compete: 2 years * Average Salary with associate degree only: $35,000 * Average Salary with bachelor’s degree: $55,000 * Present Value of 10% Discount Rate Assume you will earn the above salaries for ten years. Use the present value tables to complete the following: 1. Determine the Net Present Value of the Cash Flows from the associate degree; there is no tuition cost as you have already completed the degree. 2. Determine the Net Present Value of the Cash Flows from the bachelor’s degree;…
Plz solve both part CASE STUDY: Brian is a 22-year old university graduate having just secured a government job earning $50,000/year. He does not percieve there to be much risk to him keeping the job long into the future. In trying to make some decisions around his financial future she deliberates the following: 1) HUMAN CAPITAL - What discount rate would you use in calculating Brian's gross human capital? Please explain your reasoning for this, both on how you derived the appropriate dscount rate to be used and WHY. Hint: You will need this for answer #2 2) What is the present value of Brian's lifetime human capital, if he plans to work until age 65? Assume he gets his first paycheck at the end of his first month of work and is paid monthly.
If you are an investor, you will put a sum amount in a bank account and will keep on adding that amount into that account until you want. Once you get to retire from your job you can start getting that amount in the form of constant or variable payouts. This amount considered as: A. Annuity B. Retirement planning C. Accumulate interest
What would be the best way to for me to save money, for when I know i have money, i continue to spend until i run out
9. How much is a college education worth? In the text, we supposed a college education raised a person's wage by $30,000 per year, from $40,000 to $70,000. Assume the interest rate is 3% and there is no growth in wages, then answer the following. 1. Suppose you are a high school senior deciding whether or not to go to college. What is the present discounted value of your labor income if you forgo college and start work immediately? 2. As an alternative, you could pay $20,000 per year in college tuition, attend for 4 years, and then earn S70,000 per year after you graduate. What is the present discounted value of your labor earnings under this plan? (Compute this value from the point of view of a high school senior.) 3. Discuss the economic value of a college education.
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A certified financial planner notes that with an unsubsidized student loan, the borrower has the choice of whether to make interest payments on the loan while still in college. She advises that making the interest payments rather than postponing them until after graduation is "always to your financial benefit ... because otherwise the interest payments will capitalize" (a) (b) Why does she believe that making the payments would be to your fi- nancial benefit? Are there good reasons some students decide to postpone making the interest payments until after they graduate? Briefly explain. What does the financial planner mean when noting that the interest payments will "capitalize"?
1. Josh is not sure if he should attend college or not. Part of his decision will be based on the return on investment of college. He estimates that the per year cost to attend Texas Tech including room and board is $27,750. He also assumes the cost will rise by 5.5% per year. How much is a 4 year degree going to cost Josh? A. Josh recognizes that not only will he have the costs of attending school, but he will also be giving up a salary while he attends school. He figures the average salary for those with only a high school diploma is $30,000. He assumes he would receive a 2.4% cost of living raise each year. Determine how much money he will forgo while attending school. B. If Josh adds the cost of college with the salary he will forgo by attending college, he finds it will cost: in total. (Keep in mind that this does not include any interest on loans needed to pay for school.) C. To help him determine if it really is worth it to get a college education, Josh wants to see what the…
Plan to Save You will need to spend money to achieve most of the long-term goals you set in your life. It could be money to pay for your education, buy a house, raise a family, travel, start a business, and so on. Because you need money to achieve your most valued long-term goals, you also need to create a savings plan as a part of your overall financial plan. Saving is not something that just happens for most people. It is the result of careful planning and controlled spending. Consider Walter, who would like to save $300 per month toward the purchase of a home. Walter's income and spending in the past month are shown below. Use this information to answer the questions that follow. Walter's Income Income Spending Net (after tax) Wages Interest Earned $2,850.00 Rent/Utilities $751.76 $64.07 Food $348.32 Clothing Transportation $499.61 Loan Payments $299.00 Entertainment $454.92 Stock Dividends $120.00 $239.42 $231.42 Insurance Other $273.45 1. How much was Walter's income? 2. How much…
Plan to Save You will need to spend money to achieve most of the long-term goals you set in your life. It could be money to pay for your education, buy a house, raise a family, travel, start a business, and so on. Because you need money to achieve your most valued long-term goals, you also need to create a savings plan as a part of your overall financial plan. Saving is not something that just happens for most people. It is the result of careful planning and controlled spending. Consider Walter, who would like to save $300 per month toward the purchase of a home. Walter's income and spending in the past month are shown below. Use this information to answer the questions that follow. Walter's Income Income Spending Net (after tax) Wages $2,850.00 Rent/Utilities S751.76 Interest Earned $64.07 Food $348.32 $120.00 Clothing Transportation $499.61 Loan Payments $299.00 Entertainment $454.92 Stock Dividends $239.42 Insurance $231.42 Other $273.45 1. How much was Walter's income? 2. How much…