Additional educational years or the time value of money

Assignment Help Financial Management

Reference no: EM131049358

You have chosen biology as your college major because you would like to be a medical doctor. However, you find that the probability of being accepted into medical school is about 10 percent. If you are accepted into medical school, then your starting salary when you graduate will be $300,000 per year. However, if you are not accepted, then you would choose to work in a zoo, where you will earn $40,000 per year. Without considering the additional educational years or the time value of money, what is your expected starting salary as well as the standard deviation of that starting salary?

Reference no: EM131049358

Questions Cloud

Approach to budget deficits : The following quotation is from Bloomberg .Com and is in turn based on extracts from a paper by Michael Spence: As you can see by the brief bio I have attached he's no "lefty." Is the approach to budget deficits briefly outlined here more "Keynes..

Project on growing organic and vegetables : WHAT IS CSR AND WHAT ARE THE OBJECTIVES OF CSR IN DEVELOPING A NEW PROJECT ON GROWING ORGANIC AND VEGETABLES. (250 word) and use Harvard reference

Find the present equivalent value and equivalent value : The property appraisal office for Mobile County has just installed new software to track residential market values for property tax computations. The manager wants to know the total equivalent cost of all future costs incurred when the county commiss..

Process of economic decision making : "Behavioral bias is emotional bias and its not correct pure rational behavioral is process of economic decision making today i will decide as per economic condition not as per emotions"

Additional educational years or the time value of money : You have chosen biology as your college major because you would like to be a medical doctor. However, you find that the probability of being accepted into medical school is about 10 percent. Without considering the additional educational years or the..

What is the required return on franc flows : You are evaluating a proposed expansion of an existing subsidiary located in Switzerland. The cost of the expansion would be SF 21 million. The cash flows from the project would be SF 5.5 million per year for the next five years. What is the required..

Should cast iron grant or refuse credit : On each non delinquent sale Cast Iron receives revenues with a present value of $1,240 and incurs costs with a present value of $1,090. Assume there is no possibility of repeat orders and that the probability of successful collection from the custome..

Concerned about your retirement : You are 21 years old and are concerned about your retirement. You want to live comfortably when you retire 49 years from now. Since you won’t have a house payment (you expect to have the mortgage paid off by then), you figure you will need only $4,00..

Types of assistance : This is classified as an unintended consequence of these types of assistance. How does this affect the incentive to work as opposed to not work? Do you consider this to be fair?

User Account

All Pages