Tvm. for this and the next 2 questions: your brother just graduated

1. TVM. For this and the next 2 questions: Your brother just graduated from high school and is seeking your advice as to whether he should find a job immediately or go to college for 4 years and then find a job. He estimates that if he gets a job immediately, he will earn $15,000 per year for the next 40 years. If he goes to college first, he estimates that he can earn $30,000 for each of the 36 years after he graduates (for simplicity, assume zero growth in income. Also, whether or not he goes to college, he plans to retire 40 years from today.) He also estimates that the 4 years of college will cost him $8,000 per year. Assume that his time value of money is 14%. (If he goes to college first, he can also borrow money at 14%). Assume that all cash flows occur at the end of each period. What is the present value of his cash flows if he gets the job immediately?

2. What is the present value of his cash flows if he goes to college first, foregoing the opportunity to earn an income in the next 4 years?

3. Suppose your brother’s chances of getting a job in the next 4 years are at best doubtful; in which case, you should assume that he will be unemployed during this period. What is the PV of his cash flows if he goes to college first?

Order a unique copy of this paper
(550 words)

Approximate price: $22

Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
The price is based on these factors:
Academic level
Number of pages