Marco as a Mechatronics Engineer is earning an average annual salary of $5M for 10 years. A private company would like to acquire his services and offers him an initial salary of $3M but is increasing at the rate of $400,000 annually. If money is worth 10% is Viel going to accept the offer?
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Marco as a Mechatronics Engineer is earning an average annual salary of $5M for 10 years. A private company would like to acquire his services and offers him an initial salary of $3M but is increasing at the rate of $400,000 annually. If money is worth 10% is Viel going to accept the offer?
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- Ms. Adams has received a job offer as an administrative assistant. Her base salary will be $50,000. She will receive her first annual salary payment one year from the day she begins to work. In addition, she will get an immediate $10,000 bonus for joining the company. Her salary will grow at 4 percent each year and each year she will receive a bonus equal to 10% of her salary. Ms. Adams is expected to work for 30 years. What is the present value of the offer if the appropriate discount rate is 10% (EAR)?A man who is 30 years old at the start of the year, is considering getting an MFM degree. He currently earns $40,000 per year and expects to continue earning that amount for the rest of his working life (until age 65). He will give up his income for two years and will pay $20,000 per year in tuition, if he attends business school. In exchange, he expects a raise in his salary after completing his MFM. Assume that the post-graduation salary grows at a 5% annual rate and that the discount rate is 8%. What is the minimum expected starting salary after graduation for him that makes attending business school a positive-NPV investment? (Assuming that all cash flows happen at the end of each year.) Use Time Value of Money calculations.Barry wants to re-model the store that he has for his business. His cousin Diego agrees to give him $100,000, but asks for 10 percent of the profits in return. Joseph's father William is reluctant to put his own money into the business, but finally agrees to lend $100,000 to him at an interest rate of 5 percent per year, with interest to be paid every month. The agreement is put in writing. What most accurately describes these arrangements?
- Mr. Grayson is considering giving up his paid employment and going into business on his ownaccount. He is considering buying a quarry pit with a “life” of about 35 years. To purchase thisbusiness, he would have to pay sh 4,750,000 now. Mr. Grayson wishes to retire in 20 years’time. He predicts that the net cash operating receipts from this business will be sh 1,250,000 perannum for the first 15 years and sh 1,000,000 per annum for the last 5 years. He thinks that thebusiness could be sold at the end of the 20 year period for sh 1,500,000. Additionally, heestimates that certain capital replacements and improvements would be necessary and this shouldamount to sh 100,000 per annum for the first 5 years; sh 150,000 per annum for the next 5 years,sh 200,000 per annum for the next 7 years and nothing for the last three years. This expenditurewould be incurred at the start.Mr. Grayson has excluded any compensation to himself from the above data. If he shouldpurchase the business, however, he…r. Grayson is considering giving up his paid employment and going into business on his own account. He is considering buying a quarry pit with a “life” of about 35 years. To purchase this business, he would have to pay sh 4,750,000 now. Mr. Grayson wishes to retire in 20 years’ time. He predicts that the net cash operating receipts from this business will be sh 1,250,000 per annum for the first 15 years and sh 1,000,000 per annum for the last 5 years. He thinks that the business could be sold at the end of the 20 year period for sh 1,500,000. Additionally, he estimates that certain capital replacements and improvements would be necessary and this should amount to sh 1000,000 per annum for the first 5 years; sh 150,000 per annum for the next 5 years, sh 200,000 per annum for the next 7 years and nothing for the last three years. This expenditure would be incurred at the start. Mr. Grayson has excluded any compensation to himself from the above data. If he should purchase the business,…Jameel Jaffery is working as a chemical analyst in an industrial company with a decent salary and year-end bonuses. He is fifty years old and expects to retire at the age of 60 years. He believes that he and his wife will live to be eighty. He wishes to know the amount of money that he should save each year during his remaining working life (i.e. 10 years) that would guarantee him an annual return of Rs 200,000 for the 20 years following the period of investment. There is one more requirement. Jameel has a granddaughter whom he wishes to give (or leave) a sum of Rs 1,000,000 when he attains the age of 80 years. Assuming that Jameel Jaffery will: deposit the first installment of his planned annual investment today, and each subsequent installment will be deposited exactly one year after the previous deposit, withdraw a sum of Rs 200,000 exactly one year after the deposit of the last of the ten installments and thereafter every year for the following 19 years, the best rate of return…
- Carl Hightop, a popular basketball player, has been offered a four-year salary deal. He can either accept $4,000,000 now or accept monthly amounts of $90,000 payable at the end of each month. If money can be invested at 3.4% compounded quarterly, which option is the better option for Carl and by how much?Mohamed accepted a new position as an electrician. Mohamed has a starting annual salary of $65,000 with an expected raise of 2.5% per year. If Mohamed stays at this job for 10 years, what would be his salary?Sandy, a manufacturing engineer, just received a year-end bonus of Php 31, 000.00 that will be invested immediately. With the expectation of earning at the rate of 8% per year, Sandy hopes to take the entire amount out in exactly 20 years to pay for a family vacation when the oldest daughter is due to graduate from college. Find the amount of funds that will be available in 20 years.
- If a person works for a private firm for 10 years, then start your own business. You expect to save and deposit $50,000 a year for each of the 10 years. The first deposit will be made a year from today. If the account earns 9.1% compounded annually, how much will you have when you start your business 10 years from now?Jin decided to buy his dream car worth 1,125,000 pesos. The seller requires a 20% down payment while the rest of the payment will be settled in 15 years with an interest rate of 3% per year compounded every month. a.) Find Jin’s monthly payment. b.) If after 10 years, he decided to pay off the loan, calculate the amount he has to pay.Mr. Waleed is 25 years old and he has just started his career in the field of Marketing. Waleed has a long-term goal of purchasing his dream house at a age of 40 years, which is costing him OMR 150,000. Currently Waleed has inherited OMR 25,000 from his parents. Waleed has two options available for him as follows; Option 1 – Invest his money at compound interest rate of 10 % Semi Annually Option 2 – Invest his money at a compound interest rate of 8% Quarterly A. Compute the values under both option at the age of 40 years and advice which is the most suitable option to reach his goal? B. As of today, Waleed’s dream house is costing him OMR 150,000. Will the value be the same in 40 years’ time? Explain?