In your groups develop a detailed thought experiment about your lifetime's earnings. Start from where you are
Question:
In your groups develop a detailed thought experiment about your lifetime's earnings. Start from where you are today: how much income per year are you expected to make in 2024. Then, developed a sound and well-thought projection of your lifetime's earnings. Project your earnings until the year you turn 70 years-old. Do that for every single person in your group. Make sure each individual case is well thought, argued, and explain in your deliverable.
Questions to be answered:
- What is your asking price to give the right to someone to get 10% of your group lifetime's earnings? You have to come up with a dollar amount that you would be willing to receive today in exchange for 10% of your group yearly lifetime's earnings.
- How would you distribute the asking sum (dollar amount you asked for in question 1) among your team members? Elaborate.
- What would each of you do with the money you receive? Elaborate.
- Think about the incentives both (positive and negative) that this transaction might cause. Elaborate.
Deliverables:
1. A well formatted and readable Excel. Make sure it has formulas. It is properly formatted. And, that it has ALL assumptions and ALL answers clearly highlighted.
2. A short slide deck with your main assumptions and your answers to the questions above.
Macroeconomics
ISBN: 978-1319120054
3rd Canadian edition
Authors: Paul Krugman, Robin Wells, Iris Au, Jack Parkinson