You have just completed your BA in finance, and you are debating between pursuing a career in
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You have just completed your BA in finance, and you are debating between pursuing a career in banking or as a Finance Professor. If you become a banker, you can start your job today. Your yearly salary will be $ per year for the first three years. In year your salary will be $ and it will grow at a rate of each year after that assume that salaries will be paid at the end of each year You expect that as a banker, you can work for years, after which time you will have to retire. Given the uncertainty in the banking profession, you have decided to use a discount rate for evaluating the cash flows.
If you become a Finance Professor, you will need to pursue graduate studies for more years. The tuition and other expenses each year will be $ per year. Assume that the first tuitionexpenses will be paid today you will make a total of six payments; each payment is made at the beginning of the year After you finish your graduate school six years from today, it will take you one year to find a job as a Professor ie you will get the job at the end of year You expect to work for years as a Professor. Your starting salary will be $ and it will grow at a rate of per year assume that salaries will be paid at the end of each year and the first salary will be received at year Given the less uncertainty of academia, you have decided to use a discount rate for this profession for evaluating the cash flows. What profession should you choose?
Related Book For
Modern Advanced Accounting In Canada
ISBN: 9781259066481
7th Edition
Authors: Hilton Murray, Herauf Darrell
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