Jay is evaluating two career choices: i. Becoming an investment banker and working for 30 years....

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Jay is evaluating two career choices: i. Becoming an investment banker and working for 30 years. He expects the annual salary starts at $12, 000 and grows at 3% each year Opening a jazz bar which requires an upfront investment of $8,000 and will generate $16, 000 each year Given the discount rate is 8%, how many years does he need to operate the jazz bar, so it is an equally good option, if not better, compared with a career in the investment banking industry? ii. Jay is evaluating two career choices: i. Becoming an investment banker and working for 30 years. He expects the annual salary starts at $12, 000 and grows at 3% each year Opening a jazz bar which requires an upfront investment of $8,000 and will generate $16, 000 each year Given the discount rate is 8%, how many years does he need to operate the jazz bar, so it is an equally good option, if not better, compared with a career in the investment banking industry? ii.

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Solutions To determine the number of years it takes for the jazz bar to become an equally good option if not better compared to a career in investment ... View the full answer