the mba case , analysis by hp

the mba case , analysis by hp - 0.07 0.07 PV of cont to...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
The MBA Decision--which Options is the Best? Ben's Salary 55,000 Ritter Bradly g 0.03 age 28 working yrs 38 tax rate 0.26 tuition yrly X 2 yrs 63,000 80,000 2,500 3,500 20,000 2,000 expected salary 98,000 81,000 signing bonus 15,000 10,000 growth 0.04 0.04 tax rate 0.31 0.29 health insurance prem 3,000 3,000 discount rate
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Background image of page 2
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: 0.07 0.07 PV of cont to work Eq. 6.5 growing annuity present value=c[(1-[(1+g)/(1=r)]^t]/r-g see formula pv of cont working= 1,162,309 Ritter PV salary 1,569,663 pv cost 88,500 83,099 Net PV= 1,398,065 Bradly PV salary 1,251,408 pv cost 88,500 40,261.40 Net PV= 1,122,647 la in textbook on p. 162...
View Full Document

Page1 / 2

the mba case , analysis by hp - 0.07 0.07 PV of cont to...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online