Team 5: west cost vs east costScenarioEntry level engineer in LAExpenses in L.A.Entry level position in New YorkYearly expenses in New YorkEast vs WestWhy does NY yield more benefit?New York Cash Flow DiagramSensitivity AnalysisSlide 11Slide 12ConclusionBy Craig Brown, Troy Hamilton, Ben Logsdon, and Daniel HusenEntry level engineer looks for job opportunityLos Angeles vs New York optionsWhich option yields best future value after 10 years of work?Benefits vs Expense factors$65,000 starting salaryAnnual raise of 3%Assumed inflation: 3%MARR of 7%Monthly apartment rental: $750/monthGroceries: $4800Transportation: $2400Annual health costs: $3600Utilities: $3000Miscellaneous: $4800Total expenses:$27,600$69,797 starting salaryAnnual raise of 3%MARR of 7%Assumed inflation of 3%Apartment rental: $11,400Utilities: $4,800Groceries: $3,600Health: $3,120Transportation: $1,560Miscellaneous: $4,800Total expenses: $29,280Net Future Worth for LA: $277,112.67Net Future Worth for NY: $296,344.92 (for disposable incomes)NY option has $19,232.25 greater NFW.NY had greater starting salaryLess transportation expenses than LACheaper grocery expensesLower overall expenses despite higher income tax.Based on our assumptions, the east coast option yields the greater profit in 10 yearsIf the west coast showed slightly more favorable conditions then it could yield as good or better
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