Future expected streams of income

Assignment Help Business Management
Reference no: EM131298419

You're 20 years old and you're trying to decide which career path to take based on the future expected streams of income. Occupation A has you earning $15,000 per year for the next 5 years, then $25,000 per year for the next 30 years. Occupation B has you earning only $1,000 per year for 4 years, then $10,000 per year for 6 years, and finally $50,000 per year for the next 25 years. You plan to retire when you are 55.

a. Write out a formula to calculate the present value of each of these income streams, assuming the interest rate is r. (Hint: you can write "..." instead of all 35 terms when its obvious the next term in sequence)

b. What occupation would be better if the interest rate was zero? If it was extremely high?

Reference no: EM131298419

Questions Cloud

Equilibrium level of unemployment-draw graph : Suppose there is a labor market with a demand curve for labor given by Qd= 10 -W and a supply curve for labor given by Qs= W, where W is the wage rate. a. Using algebra calculate the equilibrium wage rate and the equilibrium level of unemployment a..
Find the mean output for each packaging : Rousillon Inc. sells identical set of macaroons in three different packaging at the same price. Find the mean output for each packaging and the grand mean for all the months and for all the three packaging's. Find the value of SSA, SSE, and SST
Determine the flow rate in each section of cast-iron pipe : Determine the flow rate in each section of cast-iron pipe in the network shown below using the Darcy friction factor. Flow inputs (Q1, Q2) and flow demands (Q3, Q4, Q5) in the system are given. Assume T = 10°C.
Please find an article : Please find an article, a podcast, a video, a documentary, a book, or from a speaker that relates to business or economic and write a 400-500 word review of the things you learned.
Future expected streams of income : You're 20 years old and you're trying to decide which career path to take based on the future expected streams of income. Occupation A has you earning $15,000 per year for the next 5 years
Analysis of econ data of professor siegler : Who had taken UC Davis ECN 102 Analysis of Econ Data of Professor Siegler? Attach any version of his final exam key please.
Production cost per door stopper for september : In September, Bellfont expects to produce 100,000door stoppers. Assuming no structural changes, what is Bellfont's production cost per door stopper for September?
Describe the method and provide similarities and differences : Compare the representation of St. Francis's message in this artwork to how your selection communicates a saint's message. Describe the method and provide similarities and differences. Cite your source(s).
How does the work of art relate to its cultural context : Explain how it was made and how it was used. How does the work of art relate to its cultural and social context? What impact or connection does this artwork present in relationship to our society today?

Reviews

Write a Review

Business Management Questions & Answers

  Strategic analysis of complex messy business situations

The purpose is to enable the student to: Gain experience in the strategic analysis of complex, messy business situations; Communicate the findings of a formal piece of work an meet a deadline; Gain experience in writing clearly, well organised and co..

  Communication across genders

Communication Across Genders Please study communication across genders. Apply the following guidelines in ALL of your assignments:

  Applied statistics for health care professionals

In order to receive full credit on calculated answers, please show your work. (Use Word's equation editor, etc., and/or provides a short written description as to how you obtained the final result.)

  What are plausible actions that laura

He reasons that if they were to point out his past mistake, others might lose their confidence in him and, besides, there would probably be no clinical impact since the specimen was already five years oldWhat are plausible actions that Laura could..

  Abandoned or brought under control

Why does it often take a long time before troubled projects are abandoned or brought under control?

  Ceo responsible for any and all actions of a company

1. Is it fair to hold a CEO responsible for any and all actions of a company? Consider that Scrushy was not an accountant and that the outside auditors, Ernst & Young, did not detect the fraud. If he were not involved, should he still be held account..

  Calculate dead weight loss arising from the monopoly

Verify the monopolist equilibrium is (Q=20,P=60). What is the perfectly competitive equilibrium? Calculate dead weight loss arising from the monopoly equilibrium.

  Companies making wrong decisionscan you find examples of

companies making wrong decisionscan you find examples of when companies adapted to perceived needs but that decision

  Full range leadership development behaviors

How can you use full range leadership development behaviors to engage customers in design, product testing, enhancement ideas using the company's internet website?

  How robot is displayed to the client is a critical component

This document is to successfully use and pull key features from XYZ to further improve CC portal. Furthermore, successful aggregations of clients internal and external investment accounts and how it is displayed to the client is a critical compone..

  Evaluate business proposals

Define capital budgeting and explain how it is used to evaluate business proposals. What kinds and types of assets is this business process concerned with?

  Organizational design and culture

Many companies find they are forced to remodel their traditional hierarchical structures, which were originally built around functional specialization and centralized authority, to compete in today's marketplace.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd