Brian is a 22-year old university graduate having just secured a government job earning $50,000/year. He does
Question:
Brian is a 22-year old university graduate having just secured a government job earning $50,000/year. He does not percieve there to be much risk to him keeping the job long into the future. In trying to make some decisions around his financial future she deliberates the following:
1) HUMAN CAPITAL - What discount rate would you use in calculating Brian's gross human capital? Please explain your reasoning for this, both on how you derived the appropriate dscount rate to be used and WHY. Hint: You will need this for answer #2
2) What is the present value of Brian's lifetime human capital, if he plans to work until age 65? Assume he gets his first paycheck at the end of his first month of work and is paid monthly.
Business Math
ISBN: 978-0133011203
10th edition
Authors: Cheryl Cleaves, Margie Hobbs, Jeffrey Noble