Your younger brother has come to you for advice
Your younger brother has come to you for advice
Your younger brother has come to you for advice. He is about to enter college and has two options open to him. His first option is to study engineering. If he does this, his undergraduate degree would cost him $30,000 a year for four years. Having obtained this, he would need to gain two years of practical experience: in the first year he would earn $35,000, in the second year he would earn $40,000.
He would then need to obtain his master’s degree, which will cost $35,000 a year for two years. After that he will be fully qualified and can earn $60,000 per year for 30 years. His other alternative is to study financial accounting. If he does this, he would pay $25,000 a year for four years and then he would earn $50,000 per year for 35 years. The effort involved in the two careers is the same, so he is only interested in the earnings the jobs. provide. All earnings and costs are paid at the end of the year. What advice would you give him if the market interest rate is 5 percent?
a. Tell him to choose Engineering since its NPV is $526,611.09
b. Tell him to choose Financial Accounting since its NPV is $584,905.75
c. Tell him to choose Engineering since its NPV is $341,155.80
d. Tell him to choose Financial Accounting since its NPV is $409,205.58
e. Tell him to choose Engineering since its NPV is $599,134.32
1.Explain the process by which a Steinway grand piano is constructed as a subsystem of a larger system. From what the text tells you, give some examples of how the production subsystem is affected by the management, financial, and marketing subsystems.
2. Discuss the Steinway process in systems perspective of organizations. Explain the role of: inputs from the environment, the transformation process and the outputs into the environment.
3. Discuss some of the ways the principles of behavioral management and operations management can throw light on the Steinway process. How the contingency perspective? In what ways does the Steinway process reflect a universal perspective, and in what ways does it reflect contingency perspective.