ADM 2350 Winter 2011 Assign 2 Solns

ADM 2350 Winter 2011 Assign 2 Solns - Winter 2011 ADM 2350...

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www.telfer.uOttawa.ca Winter 2011 ADM 2350 SECTIONS M, N, & P Prof. W. Rentz FINANCIAL MANAGEMENT Assignment #2 Solutions GENERAL INSTRUCTIONS: Your assignment must be sent electronically in either doc docx, or pdf format to the TUTOR for your section . Your tutor must RECEIVE your assignment by no later than noon on Thursday, February 17, 2011 . Late assignments will NOT be accepted. To ensure that your tutor receives the assignment on time, it is STRONGLY recommended that you electronically submit your assignment before midnight on the evening of Wednesday, February 16, 2011 at the latest. Unless there are system problems with doc-depot, the professors’ solution set will be posted on doc-depot by no later than 6 PM of the due date. This assignment counts 5% of your course grade. You are encouraged to work on this assignment in teams of up to 5 students from the same section of this course . However, you may turn in an individual assignment if you prefer. Each assignment must be typed and contain the student name(s) and student number(s) on each page. A scanned statement of integrity must be electronically attached to each assignment (See pages 10-11 of the course syllabus). Each individual whose name appears on the assignment must sign the statement of integrity. Live Links for Tutors’ E-mail Addresses: Section M Yue Wan ywan064@uottawa.ca Section N Sushil Dahiya sushil.d1@gmail.com Section P Yuan Liu adm2350p@hotmail.com Section Q Malcolm MacQuarrie mmacq073@uottawa.ca 1. (25 marks) Your sister Melissa will be graduating from high school this coming June. She is considering majoring in computer science or finance. If she majors in computer science, her educational expenses to obtain her B.Sc. in Computer Science will be $30,000 per year for 4 years. On graduating, she will work for two years and receive a salary of $90,000 for the first year and $100,000 for the second year. Then she will go to graduate school for 2 years to obtain her M.Sc., incurring educational expenses of $40,000 per year. Then she will work for 40 years as a computer scientist with a major software developer. Her starting salary will be $125,000 per year, and this salary is expected to grow at a compound rate of 4 percent per year throughout her career. If Melissa chooses to major in finance, her educational expenses to obtain her B.Com. would be $25,000 per year for 4 years. Then she will work for 45 years as a financial analyst. Her starting salary will be $85,000 per year, and this salary is also expected to grow at a compound rate of 4 percent per year throughout her career. Assuming that Melissa is solely motivated by the time value of money, what career would you recommend to Melissa? Assume that all educational expenses occur at the beginning of each educational year and all salaries occur at the end of each working year. Assume a compound interest rate of 8 percent per year in your calculations.
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Winter 2011 Assignment #2 Solutions ADM 2350 2 Computer Science Career: Brute Force Approach
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This note was uploaded on 01/10/2012 for the course TEFLER 2350 taught by Professor Rentz during the Winter '11 term at University of Ottawa.

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ADM 2350 Winter 2011 Assign 2 Solns - Winter 2011 ADM 2350...

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