50.1K

Verified Solution

Link Copied!

You receive two job offers in the same big city. The first job is close to your parents' house, and they have offered to let you live at home for a year so you wont have to incur expenses for housing, food, or cable and Internet. This job pays $46,000 per year. The second job is far away from your parents' house, so you'll have to rent an apartment with parking ($10,500 per year), buy your own food ($2,250 per year), and pay for your own cable and Internet ($500 per year). This job pays $51,000 per year. You still plan to do laundry at your parents' house once a week if you live in the city, and you plan to go into the city once a week to visit with friends if you live at home. Thus, the cost of operating your car will be about the same either way. In dition, your parents refuse to pay for your cell phone service ($690 per year). Read the requirements. Requirement 1. Based on this information alone, what is the net difference between the two alternatives (salary, net of relevant costs)? Begin by computing the net salary for each alternative. (Complete all answer boxes. Enter a "0" for any zero balances.) Job #1 Job #2 Salary Less: Relevant expenses Salary, net The net difference between the two jobs is $ . I would save this much money if I chose Requirement 2. What information is irrelevant? Why? The irrelevant because they Requirement 3. What qualitative information is relevant to your decision? I might consider whether I would benefit if Enter any number in the edit fields and then continue to the next question. You receive two job offers in the same big city. The first job is close to your parents' house, and they have offered to let you live at home for a year so you wont have to incur expenses for housing, food, or cable and Internet. This job pays $46,000 per year. The second job is far away from your parents' house, so you'll have to rent an apartment with parking ($10,500 per year), buy your own food ($2,250 per year), and pay for your own cable and Internet ($500 per year). This job pays $51,000 per year. You still plan to do laundry at your parents' house once a week if you live in the city, and you plan to go into the city once a week to visit with friends if you live at home. Thus, the cost of operating your car will be about the same either way. In dition, your parents refuse to pay for your cell phone service ($690 per year). Read the requirements. Requirement 1. Based on this information alone, what is the net difference between the two alternatives (salary, net of relevant costs)? Begin by computing the net salary for each alternative. (Complete all answer boxes. Enter a "0" for any zero balances.) Job #1 Job #2 Salary Less: Relevant expenses Salary, net The net difference between the two jobs is $ . I would save this much money if I chose Requirement 2. What information is irrelevant? Why? The irrelevant because they Requirement 3. What qualitative information is relevant to your decision? I might consider whether I would benefit if Enter any number in the edit fields and then continue to the next

Answer & Explanation Solved by verified expert

See Answer