Reference no: EM13862166
Problem: Seniority and Time-Based Pay
Michelle has just offered a job at Mullaney/Hunter Enterprises in the production line. Michelle expects to stay at this firm for at least 40 years, during this time her productivity, V, is given by the first column in the attached table. Michelle is faced with the option of choosing one of two wage profiles. The first profile, Wage I, is combined with a mandatory retirement clause: if she takes it, she must retire after 40 years (thus she gets a wage of zero after year 40). Note that year 40 is the date at which the value of her production equals the value of her leisure (denoted in dollar value by L). The second wage profile pays Michelle less in her younger years, but more in her older years. Because profile II offers her a relatively attractive wage after year 40 and does not contain a mandatory retirement clause, it induces her to work past year 40 (just one year, for simplicity). Using the attached table please answer the following questions.
a. Under both wage profiles, is Michelle overpaid (relative to her productivity) or underpaid when she is young? When she is old? At which wage does she change from being over/underpaid to the other in each wage profile?
b. Assuming the discount rate is zero, calculate the present value of Michelle's lifetime output, and of her lifetime wages received under both wage streams. Show that the form just breaks even on employing Michelle under both schemes.
c. Which wage structure will Michelle earn more in? What is the difference in total wages between wage profile I and wage profile II?
d. Which wage profile does Michelle prefer and WHY?
e. How much more would she have to be paid in the final year of the contract in profile II in order to be indifferent between the two wage structures? Why won't the firm agree to this new wage structure?
Attachment:- Data Q1.xls
|
A block attached to a vertical spring oscillates up
: A block attached to a vertical spring oscillates up and down. When the block is in its highest position, which of the following statements is true about its momentum P? A. P=0, dp/dt points down B. P points down, dp/dt points down
|
|
Explain how the weighing scale you have dissected works
: Explain how the weighing scale you have dissected works. Sketch free-hand an alternative design for the artifact. Write a one-page essay about how your design works.
|
|
The vertical when the pendulum is at its maximum displacemen
: A 28 g rifle bullet traveling at 430 m/s buries itself in a 3.6 kg pendulum hanging on a 2.8 m long string, which makes the pendulum swing upward in an arc. Determine the angle the string makes with the vertical when the pendulum is at its maximum di..
|
|
Develop international marketing strategy for uae basecompany
: Develop an international marketing strategy for the UAE based company going global. Assume you are a SME and develop strategies accordingly Market entry strategies.
|
|
Seniority and time-based pay
: Michelle has just offered a job at Mullaney/Hunter Enterprises in the production line. Michelle expects to stay at this firm for at least 40 years, during this time her productivity, V, is given by the first column in the attached table.
|
|
Determine construction exterior walls interior walls floors
: Calculations must include all conditions/systems that affect the loads in each room. Phase Three Requirements of Project Cooling Load Calculations for each room of your selected site. Calculations must include all conditions/systems that affect th..
|
|
Carl the philosopher brags
: Pick the best answer for which assertions are made by each of the following claims 1) Carl The Philosopher brags that he was the first to realize that the Longhurst Theorem is true.
|
|
What would the journal entry be to record this transaction
: Prepare the journal entries to create and close the warranty period for the contingent liability due to sales from February - What would you recommend that the company do and why and What would the journal entry be to record this transaction?
|
|
Design a sequential logic system
: For the feedback register shown in Figure 1, determine the count sequence. Assume an initial state of Qa, Qb, Qc, Qd,Qe = 10000. Design a sequential logic system, using JK Flip-Flops, which detects a bit pattern of 1101 in a stream of serial data.
|