accounting II week 5 assignment

accounting II week 5 assignment - I do not feel the small...

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Accounting II – Week 5 Discussion 1. If Hunter were to ignore the time value of money in his short term decision making as well as set his goal to earn as much money as possible between now and next summer Hunter would need to calculate potential earnings for the summer at each job. It turns out that he could make slightly more money at the meat packing plant as an accountant. Dominic would be paid $8.75 per hour and work 20 hours each week for 12 weeks earning $3500. He would then earn, working full time, $550 per week for 12 weeks the following summer totaling $6600. His grand total earns him $10,100. He would have to pay for his classes up front but will be eligible to recover some of that money and the work experience is relevant to his desired field which is beneficial for him in the future. If I were faced with situation I would go forward gaining the valuble experience in the accounting department.
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Unformatted text preview: I do not feel the small difference in money would be nearly enough to go in the other direction. 2. Supposing that Hunter considers the time value of money for all cash flows that he expects to receive one year or more in the future this consideration would favor the alternative of the bottling company because he will make more money: $4560 during the summer and avoid the additional education expense rather than work at the meat plant accountant which has an additional expense to educate himself and less money during the summer months. The fact that accounting job at the meat company pays more in the long run, with the additional expense is something to consider but the opportunity he has to make more money over the summer, money he can spend or invest as he wishes, the bottling job would be the best choice considering the time value of money....
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