Discussions

Due Sunday, May 3, 2015

Principles of Finance

· Question B: Class, I'm sure many of you remember the Publisher's Clearing House sweepstakes - like me, some of you may even have been a finalist for the super prize of $10 million. :-) If you did win this prize, you would not actually receive a check for $10 million. Instead, you would receive $500,000 per year for 20 years. Imagine that you actually were the lucky winner. From a purely financial standpoint, would you be willing to accept $8 million today rather than $500,000 per year for the next 20 years? Why or why not? What non-financial factors might also be considered?

Human Resources

· Incentive Plans

Variable pay-for-performance incentive plans are becoming quite popular. However, there is also value in nonmonetary incentives. They range from performance and recognition rewards to simple verbal gestures in appreciation for a job well done.

Think about where you work or have worked in the past.

(You can use a past work experience Dennis)

· What do the incentives consist of and do you think they are successful?

· Assuming you are paid a fair wage, which type would you prefer?