# Assignment 1 Managerial Finance 650 Ashford

944 words - 4 pages

Assignment 1
Closing Case Chapter 4- MBA Decision
Keith C. Quarles
Managerial Finance
Robert Watson
3-26-12

1 Age can play a significant part in the decision whether to keep working or go back to school. A young person can go back to school and still have time to chase a career whereas an older person would have a smaller window of opportunity and may not as willing to chance giving up their livelihood to get a degree. The opportunity costs of leaving the job may be equated in the coming years after graduating considering the added value to the marketability of the student once a degree is attained as reflected in a higher base salary than the previous job which would make the ...view middle of the document...

12

Next for the lost salary's opportunity costs;

Pv o f lost salary=\$40,700/( 1 . 0 6 5 )
+\$40,700( 1 + 0 3 )/( 1+.065) 2
= \$75,176.00

The increase is the present value of his future salary , plus bonus which is:

Present value of after tax bonus paid in 2 years= \$ 20,000 (1.31) / 1.0652

=\$12, 166.90

After ta x salary = \$100,000 (1 -. 3 1 ) = \$69,000

His salary will grow a t 4 percent per yea r but he will only work 38 years. His present value of his after tax salary is :

Pv =\$1,640,84. 35

First salary payment is three years from today so we discount for two years to get this value as follows :

P v = \$1,640,843.35/ 1.0652
Pv =\$1,446,664.77

The total value of a Wilton M.B.A. = \$140,575.12 - 75,160 +12,166. 90 +1,446,664.77=\$1,246,958.48

Mount Perry MBA :

Total direct costs = \$75,000 +3,500+3,000 + 2,000 = \$83,500 when paid today which makes it the direct cost present value also.

P v of indirect costs (lost salary)=\$40,700 /(1.065)=\$38,215.96
Next we compute his salary::

Pv of after tax bonus paid in 1 year= \$16,000 (1- .29 ) /1.065=\$10,666.67

Aftertax salary=\$88,000(1-.29 )= \$62,480

His salary will increase at 3.5 percent/yr sand he will work for 39 years thus the present value of his aftertax salary is::
Pv = \$1,399, 292.27

That is the first year salary but the first salary payment is in two years so we discount for one year to find today's value as follows :

Pv =\$1,399,292.27...

## Other Essays Like Assignment 1 Managerial Finance 650-Ashford

### Bajaj Research Essay

1582 words - 7 pages principles and concepts from different fields of economics with typical problems of managerial decision-making and policy formulation in business organizations whether in a local or global context. Understanding the application of economic principles to key management decisions will provide guidance to increase value creation within organizations, and allows a better understanding of the external business environment in which organizations

### SOC 312 Tutorials / soc312dotcom Essay

1644 words - 7 pages SOC 312 Entire Course (Ash) SOC 312 Week 1 DQ 1 Bronfenbrennerâ€™s Ecological Model SOC 312 Week 1 DQ 2 Agents of Socialization SOC 312 Week 2 DQ 1 The Theory of Mind SOC 312 Week 2 DQ 2 Self-Regulation SOC 312 Week 3 DQ 1 Motivators SOC 312 Week 3 DQ 2 Control SOC 312 Week 3 Assignment Developmentally Appropriate Teaching Strategies SOC 312 Week 4 DQ 1 Cultural and Linguistic Differences SOC 312 Week 4 DQ 2 Bullying

### HCA 322 Tutorials / hca322dotcom

1090 words - 5 pages HCA 322 Entire Course HCA 322 Week 1 DQ 1 Diversity and Ethical Decision Making HCA 322 Week 1 DQ 2 Autonomy, Fidelity, and Confidentiality HCA 322 Week 2 DQ 1 Euthanasia Laws HCA 322 Week 2 DQ 2 Health Care Ethics Committees HCA 322 Week 2 Assignment Euthanasia Assisted Suicide Debate HCA 322 Week 3 DQ 1 Health Care Quality Improvement Act of 1986 HCA 322 Week 3 DQ 2 Respondeat Superior HCA 322 Week 3 Assignment Types of Law HCA

### Bndcbxcvbdvbxzcb

1030 words - 5 pages THIS LIST AVAILABLE TO STUDENTS ALONG WITH THE CASE TO SIMPLIFY THE ASSIGNMENT. 1. In 1965, the exchange rate was \$2.80/£. 2. A worker is probably making about £3,000/year. - A £1,500 pension at about 50% of regular pay - The foreman makes £5,000, and a worker would be about 50% to 75% of that - A US chemicals worker made about \$7,000 (before fringes) in 1965 = ~£2,500 3. Thus, the workforce is about 15 people

### Csusb Mba Catalog 2012-2014

5599 words - 23 pages . 3. IST 609. 4. 5. 6. 7. MGMT 601. MGMT 685. MKTG 605. SCM 607. Accounting for Managerial Decision-Making (4) Financial Theory and Corporate Finance (4) Information Systems and Technology Management (4) Organization Theory and Behavior (4) Corporate Strategy in a Global Economy (4) Marketing Management (4) Managing the Supply Chain (4) Business Administration / 389 Global Business Concentration 1. MGMT 626. International New Venture

### Team Works Matters

2654 words - 11 pages entire casino to operate incorrectly. One person not using their time wisely at work can affect the entire team. The secondary data used in this sample consist of 1 executive, 1 office manager, 1 HR director, 1 HR office manager, 1 Finance Director, 1 Finance Supervisor, 1 Compliance Officer, 1 Payroll Accountant, 1 Revenue Auditor supervisor, and 4 Revenue Auditors. The study conducted will show how when one person lacks in his/her job the

### ACCT 504 Accounting and Finance, Managerial Use and Analysis

1275 words - 6 pages ACCT 504 Accounting and Finance, Managerial Use and Analysis Product Description WEEK 1Discussion Question, An Overview of Financial StatementsWEEK 2Discussion Question, Accounting Information System and Accrual Accounting ConceptsWEEK 3Case Study 1, The Complete Accounting Cycle, Parkview LandscapingDiscussion 1, CVP AnalysisDiscussion 2, Merchandising Operations and InventoryWEEK 4Assignment - International Business

### ACCT 504 Accounting and Finance, Managerial Use and Analysis

1653 words - 7 pages ACCT 504 Accounting and Finance, Managerial Use and Analysis Product Description WEEK 1Discussion Question, An Overview of Financial StatementsWEEK 2Discussion Question, Accounting Information System and Accrual Accounting ConceptsWEEK 3Case Study 1, The Complete Accounting Cycle, Parkview LandscapingDiscussion 1, CVP AnalysisDiscussion 2, Merchandising Operations and InventoryWEEK 4Assignment - International Business

### Hsm/260 - Week - 4 / Fixed Costs, Variable Costs and Break Even Point

658 words - 3 pages Assignment: Fixed Costs, Variable Costs, and Break-Even Point Exercise 10.1 During the sixth month of the fiscal year, the program director of the Westchester HomeDelivered Meals (WHDM) program decides to again recompute fixed costs, variable costs, and the BEP using the high–low method. Here are the number of meals served and the total costs of the program for each of the first six months: Month July August September October November December

### Whole Foods

805 words - 4 pages WINONA UNIVERSITY Business Administration Department Semester: ___Fall 2014___ Assignment for Course #: ____MGMT 417______ Course Name: _________Compensation Management___________________ Submitted to: Baek-Kyoo (Brian) Joo, Ph.D. Submitted by: __Abbey Tibesar______________ Due Date: ______October 12, 2014 Assignment Title: [Problem Set-1] Job Evaluation at Whole Foods_____ CERTIFICATION OF AUTHORSHIP: I

### Principles of Managerial Finance

703 words - 3 pages PRINCIPLES OF MANAGERIAL FINANCE 1PRINCIPLES OF MANAGERIAL FINANCE 2Principles of Managerial FinanceDerwin BrownFIN/419August 25, 2014Professor Jon PayneChapter 4: Problem 4.2Calculate the future value interest factor in each of the cases shown.According to Gitman (2006), .Case A =Case B =Case C =Case D =Chapter 4: Problem 4.3Use the future value interest factors in Appendix Table A-1 in each of the cases shown in the table on the facing page to

## Related Papers

### Finance Assignment 1

754 words - 4 pages Complexity of the US Financial System Michelle Bates Professor: Ahmad Zia Rawish Strayer University May 6, 2015 Principle of Finance 100 Complexity of the US Financial System How does the US financial market impact the economy? The financial market has different financial products including derivatives, bonds, and stocks among others. Derivatives are very complicated financial products that gain

### Ashford Proposal Essay

1084 words - 5 pages all the concepts that are being presented to me. Out of the year and a half I have attended Ashford University, there has only been one class that the assignment was immersive and visual that helped put in to action what was being taught in that class. An article from the New York Times about Ashford, “Of the students who enrolled in 2008-9, for example, 84 percent in the associate degree programs were gone by September 2010 (63 percent had left

### Alienated Labor Essay

995 words - 4 pages within 48 hours, not including Saturdays and Sundays. Please plan accordingly if you would like to receive feedback before an assignment due date. AWC Email Paper Review Writing the Final Project The Final Project: 1. Must be 1100 to 1400 words in length, and formatted according to APA style as outlined in the Ashford Writing Center. 2. Must include a title page/slide with the following: a. Title of project b. Student’s name

### Financial Management Essay

878 words - 4 pages Financial Management Challenges Londone Williams BUS 650 Managerial Finance Prof. Atkinson February 24, 2015 In order to understand the different challenges that financial managers are faced with in today’s society, it is imperative to understand the characteristics of the market structures and the influence of the market liquidity, competition and competence on financial