Provide specific rationale for your decision

Assignment Help Financial Management

Reference no: EM133561513

Discussion Post: Time Value of Money Application

This discussion will focus on choosing between debt and investment.

Assume you have recently graduated with your business degree, and landed a new position at a company you had been researching during your senior year in college. You have been offered a lump-sum sign-on bonus of $5,000. You currently have a credit card with an outstanding $3,000 balance. You also recently purchased a new condominium and vehicle. These items, in addition to your student loans, comprise your personal debt.

Consider your debt reduction and investment earnings potential, as well as any applicable taxes. Assume that tax rates are stable over the next 10 years, and inflation is low (<1% per year) and does not change. Would you personally choose to invest the $5,000 sign-on bonus, or use it to pay down your debt? Regardless of your decision to either invest or pay down debt, be specific regarding the type of investment or debt payment you would make. Provide specific rationale for your decision. You may develop a quantitative example to support your rationale.

Reference no: EM133561513

Questions Cloud

Explain support service to help maintain physical health : List and briefly explain a support service to help maintain physical health. why is it important to take care of your social and emotional wellbeing?

Define the ethical principle : Define the ethical principle. Create a scenario that demonstrates your ethical principle being applied in a healthcare setting.

Identify which has the most ingredients store : Look at the top 3 recipes and identify which has the most ingredients Store the Recipe name in Column B next to the relevant

Prevent peptic ulcers : How would taking an H2 receptor antagonist help prevent peptic ulcers?

Provide specific rationale for your decision : Would you personally choose to invest the $5,000 sign-on bonus, or use it to pay down your debt? Provide specific rationale for your decision.

How nursing as christian care fits with this theory : Nursing's historical origins from the Christian faith What it means to care for individuals as spiritual and cultural beings from a Christian worldview.

Critical importance of glucose in the human body : Referring to Carbohydrates in the Body briefly outlines the critical importance of glucose in the human body.

Develop a swot analysis with four points for each dimension : Develop a SWOT analysis with at least four points for each dimension. Develop a PESTLE analysis with at least four points for each dimension.

How has society view of the environment changed over time : How has society's view of the environment changed over time? What does the Christian Worldview say about protecting the environment?

User Account

All Pages