Estimate what is his payback period use a discounted


Tim is about to graduate next month from ODU with an engineering degree. He requires a financial plan for the first 6 years, assuming he lands an entry level position with an annual salary of $58,000 which is projected to grow at a rate of 5% annually for the duration of your analysis. Ideally he hopes to be able to set aside 5% of his salary in a savings account as a contingency fund for any unforeseen events, and 10% in long term money investments. Additionally he plans to spend15% of his salary paying of loans; particularly his college loans at the time of graduation amounts to $45,000. Assume a uniform tax rate of 15% annually over the analysis period. Estimate his net-worth at the end of each year for the analysis period How long will it take to pay off his college loans, assuming he uses the entire 15% budget on this? According to usnews.com the income difference between college and high school graduates is approximately $17500; based on this estimate what is his payback period (use a discounted payback analysis) assuming he has invested a total of $75,000 into his college education. What interest rates (i.e. names and values) have you applied through your analysis and why?

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Financial Management: Estimate what is his payback period use a discounted
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