Jill is planning the timing of her on-the-job training investments over the life cycle. What happens to Jill?s OJT investments at every age if (a) the market-determined rental rate to an efficiency unit falls?
University of California, Berkeley Fall 2007 Department of Economics Professor Andrea Weber Economics 152 ? Wage Theory and Policy Problem set #5 - Solutions 1. Peter lives for three periods. He is currently considering three alternative education-work options. He can start working immediately, earning $100,000 in period 1, $110,000 in period 2 (as his work experience leads to higher productivity), and $90,000 in period 3 (as his skills become obsolete and physical abilities deteriorate). Alternatively, he can spend $50,000 to attend college in period 1 and then earn $180,000 in periods 2 and 3. Finally, he can receive a doctorate degree in period 2 after completing his college education in period 1. This last option will cost him nothing when he is attending graduate school in the second period as his expenses on tuition and books will be covered by a research assistantship. After receiving his doctorate, he will become a professor in a business school and earn $400,000 in period 3. Peter?s discount rate is 20 percent per period. a. What are Peter?s opportunity costs versus his direct costs of schooling in both options where he invests in further education? b. Assume Peter?s discount rate is 20 percent per period. What education path maximizes Peter?s net present value of his lifetime earnings? c. What is the maximum value of Peter?s discount rate so that he chooses to get more education over no further schooling? (a) If Peter goes to college in period 1, the direct cost of schooling is $50,000. The opportunity cost is the lost wage income in period 1 $100,000. (b) The present discounted values of Peter?s earnings associated with each of the alternatives are 110,000 90,000 PV = 100,000 + + = $254,167 , HS 2 1.2 1.2 180,000 180,000 PV = -50,000 + + = $225,000 , COL 2 1.2 1.2 and 0 400,000 PV = -50,000 + + = $227,778 . PhD 2 1.2 1.2 Thus, the best option for Peter is to start working upon completely...
Possible causes for price and efficiency variances. You have been invited to interview for an internship with an international food manufacturing company. When you arriv...Jun 25 2020
SHOW WORK PLEASE!!!!!!!1. Complete problem: Yield to Maturity for Annual Payments XYZ Corporation’s bonds have 14 years remaining to maturity. Interest is paid annually, ...Aug 17 2020
List and give examples of the f our types of differences that cause financial accounting income to be either greater than or less than taxable income.5.Describe the accou...Dec 09 2019
The average global temperature is relatively high because carbon dioxide and other gases trap the longer wavelengths of infrared light (heat) and prevent them from radiat...Mar 22 2018
Using the given sections, all of A992 steel, and the plastic theory, determine the values of and as indicated.May 25 2020
0 Al Maha Company is specialized in mangoes distribution in the city of Muscat. Sales are 420 boxes per month (four weeks). It costs OR 10 to make and receive an order an...May 04 2021
Carbon monoxide is considered which of the following?a) molecular elementb) atomic elementc) ionic compoundd) molecular compounde) none of the aboveMay 19 2021
14 1.) y = sec-17May 13 2021
Mouskori Limited purchased a machine on September 3, 2012, at a cash price of $187,800. On September 4, it paid $1,200 for delivery of the machine. A one-year, $1,950 ins...May 22 2020
Which of the following describes salting?A. The union hires an individual to publicize its reasons for targeting an employer for unionization.B. The union hires an indivi...May 28 2020