SOCY 100
1. Kayla Milam
- A person may choose a career based on the education they can afford. College prices have significantly increased over time, inhibiting some from getting their desired job. In order to get a higher-stratified job or a higher education, people will have to attend college for longer, raising their student loans to over $30,000 (UMGC, n.d., Sociological Perspectives on Education). Depending on how much one has collected in student loans and the payment of the desired career, it might not be worth being in such debt.
- Cybersecurity analysts in the lowest 10% earn about $61,520 annually and the top 90% earn somewhere around $165,920 annually (Bureau of Labor Statistics, 2022, Occupational Employment and Wage Statistics: Information Security Analysts). To become a cybersecurity analyst, one does not need a college degree, but it does help in gaining knowledge and provides the foundation for the career. An IT certification is usually required for this career and many different types of certifications can be accepted. (Bureau of Labor Statistics, 2018 Interview with a Cybersecurity Consultant) Social work takes at least a bachelor’s degree and a certificate or license to get a job. With the increasing number of job opportunities, more than 760,000 social workers are projected in 2026. Depending on the job in social work that my friend gets, their pay may be between $42,700 and $75,040 per year. (Bureau of Labor Statistics, 2018, Careers in Social Work: Outlook, Pay, and More) It may not be necessary, but it is highly recommended for a person interested in being a statistician to have a graduate degree. (Bureau of Labor Statistics, 2015, Interview with a Sports Statistical Analysis) The bottom 10% earns an estimated $93,350 annually and the top 90% earns an estimated $157,300 annually. Depending on what state my friend wanted to work in depends on the chances of her being employed. States that have higher employment include, but are not limited to Florida, Texas, California, Washington, New York, Virginia, and Maryland (Bureau of Labor Statistics, 2021, Occupational Employment and Wage Statistics: Statisticians).
- First, I would always encourage my friend to pursue a career that would make her happier – There is no point in having a job that makes you miserable. Many people would rather have the money so if that were the case, I would recommend being a cybersecurity analyst. Taking all of the given information into consideration, you can spend less money on certificates and still earn that money back fairly quickly. Even if you did go to college and are in student loan debt, you can still earn the money back because then you would have more experience and greater pay. To add on top of that, the world is pushing more toward technology every day, so having that increased knowledge of technology makes you more qualified for jobs in the future. The website also gives the many states that have high to moderate employment so if my friend wanted to move, they would know their best options https://www.bls.gov/oes/current/oes151212.htm.
Bureau of Labor Statistics. (2022). Occupational Employment and Wage Statistics: Information Security Analysts. https://www.bls.gov/oes/current/oes151212.htm
Bureau of Labor Statistics. (2018). Interview with a Cybersecurity Consultant. https://www.bls.gov/careeroutlook/2018/interview/cybersecurity-consultant.htm
Bureau of Labor Statistics. (2018). Careers in Social Work: Outlook, Pay, and More. https://www.bls.gov/careeroutlook/2018/article/social-workers.htm
Bureau of Labor Statistics. (2015). Interview with a Sports Statistical Analysis. https://www.bls.gov/careeroutlook/2015/interview/sports-statistical-analyst.htm
Bureau of Labor Statistics. (2021). Occupational Employment and Wage Statistics: Statisticians. https://www.bls.gov/oes/current/oes152041.htm
University of Maryland Global Campus. (n.d.). Education, Work, and the Economy. https://learn.umgc.edu
Part 1. Based on your study of this week’s learning resources (UMGC, n.d.), briefly discuss one key factor in education, work, or the economy that is likely to have an impact (positive or negative) on the person’s choice.
A key factor that is likely to have a positive impact on someone’s career choice is education. It is important to think about and consider if employers prefer education over experience. In all three fields: cybersecurity analyst, social work, and statistician all require a certain level of higher education, certification, and/or degree. In some instances, the experience can be critical when an employer is deciding on who to give the job to. Having a degree or even more than one degree gives any applicant a bit of an edge in getting hired. In 2018 a report from the Association of American Colleges and Universities (AACU) surveyed hiring managers who stated, “it is very important or essential for individuals to complete a college educationâ€�. On the negative side of things, college is expensive and the time (years) it takes to get a degree leaves less time to be in the workforce gaining experience. O (Mueller, Education vs. experience: Which one gets the job? 2022). Obtaining a bachelor’s degree or even a master’s can create a student debt of thousands of dollars; meaning being in debt and paying after getting started on a career. Such decisions can affect major life decisions.
Part 2. Visit the Bureau of Labor Statistics website (Bureau of Labor Statistics, n.d.). Search the website and discuss what you find that is relevant to your friend/relative’s possible career choices.
The Bureau of Labor Statistics website states that cybersecurity analysts work to ensure the safety of networks, computer systems, and data including cyber-attacks. The role of a Statistician is to design, collect, and analyzes data to give ethical results. A Social Worker works to ensure the safety of families and children. The site gives information as far as the median annual income for each position and the education, degrees, and certification needed for maximum pay and incentives. The site also breaks down each of the career’s job descriptions and functions (U.S. Bureau of Labor Statistics 2023).
Part 3. Based on what you learned, which career would you suggest to your friend/relative, and why?
The cybersecurity industry is currently trending as one of the most critical and emerging industries in the world. As we live in a digital world in which the demands are constantly growing, cybersecurity is critical to the sustainability, security, and growth of every organization within the government and the private sector. My advice to a friend and/or relative would be to pursue a career as a cybersecurity analyst or something in the cybersecurity field. The demand for the protection of data and compliance is and will continue to be at an all-time high, especially with the increase in cyber threats throughout the country and the world. This career path is one that will constantly evolve as technology moves forward and the need to secure data. Cybersecurity is also a career path that is needed all throughout the country; so living in the Midwest should not pose a problem with finding employment. One of the most robust areas for this field is definitely Washington, DC.
Mueller, A. (2022, October 18). Education vs. experience: Which one gets the job? Investopedia. Retrieved February 17, 2023, from https://www.investopedia.com/financial-edge/
University of Maryland Global Campus. (n.d.) Week 6. Education, work, and the economy. Document posted in UMGC SOCY 100 online classroom, archived at https://learn.umgc.edu
U.S. Bureau of Labor Statistics. (2023, February 16). U.S. Bureau of Labor Statistics. Retrieved February 16, 2023, from https://www.bls.gov/
FINC 331
1. Jasmine German
Please give an example of a capital budgeting decision a company might need to make.
- A company may need to make a capital budgeting decision for the replacement of old production machinery in one of its manufacturing plants. Old faulty machinery may be reaching its full depreciation and also cause harm to production rates. In this case, the company may need to decide between repairing the machine or buying a new one altogether. The company would then have to calculate the cost of the two options and complete a cost valuation. In doing so, if they find that buying a new machine will result in a higher return, then that would be the option they would most likely go with.
Are there examples in using the cost of capital in personal life?
- Yes, people use the cost of capital analysis when purchasing a new home, car, or even a new security system.
When or how have you compared the cost of getting money to the potential benefit of that money?
- There was a time I planned to sell holiday baskets for Christmas. Before starting, I conducted a cost analysis of the time it would take to create the baskets, shop for the materials, and advertising for the sale. In addition, I also calculated the cost of the materials, the cost of the merchandise going into the baskets, and the cost of the gas that was required for shopping and delivering. I concluded that my potential return was not going to be worth the hassle. I was only going the make a profit that was slightly above the money and value of the time invested. The benefit of the sale would not have been much more than if I had taken the money and done something else with it.
Once a business computes its cost of capital, discuss how a manager might decide whether to take on a project or not. How are capital project investments prioritized?
- Managers might decide whether or not to take on a project or not by using valuation techniques like the discounted ash flow analysis to determine if the IRR exceeds or is equal to the cost of capital. Capital investment projects are prioritized using financial policy which helps determine which investments will produce the highest profitability considering limited resources. (Chapter 10, 2014)
Reference
Chapter 10 “Introduction to the Cost of Captial”. (2014). Finance by Boundless. posted in online classroom FINC 331. Retrieved from https://leocontent.umgc.edu/content/dam/equella-content/finc331/Chapter10IntroductiontotheCostofCapital.pdf
2. Erica Johnson
Capital budgeting involves making long-term decisions about a firm’s investments and their operating capital. Planning ultimate returns on investments in areas such as new technology, new store, real estate, and machinery are all good examples of capital budgeting.
Individuals can use cost of capital to prioritize in investing in their own business, investments, or their self. Also, a person can use cost of capital to prioritize in the payment of personal loans such as mortgages, student loans, credit card and car loans. If an individual doesn’t have any debt, they will be able to use cost of capital to analyze the interest rate of a savings or CD account. The idea will be that an individual cost of capital should be a minimal risk. Additionally, your cost of capital should have a higher anticipated payback of the minimal risk options. I applied for student loans for a semester and when I did I had to ensure that I compared the cost and benefit of incurring the payments. I looked at the benefits of having access to the education that I wanted in order to help with my future as well as being able to have sufficient income down the road. The cost weighed more in my head but in the long run the benefits of having a good education, building my career and having a good opportunity for income were weighed heavier.
Cost of capital indicates the yields a company needs in order to accept a capital project. The capital budgeting process can involve almost anything including acquiring land or purchasing fixed assets like a new truck or machinery (Pinkasovitch, 2022). After calculating the cost of capital managers will then look at the expected profits. If they exceed the cost of capital they accept the project and reject it if the price of financing the project exceeds the anticipated profits. A company will need to calculate the cost of capital in order to make capital budgeting decision on whether or not they can open a new shop. This is due to the fact that they will have to examine the cash flows related with the new shop over a long period of time. This analysis will inform the management on the amount to be spent on financing the new shop and the returns the project will bring in the future. If the amount of cash put into the project exceeds the what it will bring in the long run, then there is a high likelihood of rejecting the project.
Business prioritize its capital investments in relation to estimated or projected capital investment opportunities. Cost of capital is a necessary economic and accounting tool that calculates investment opportunity costs and maximizes potential investments in the process (O’Connell, 2018). This should be followed by a comprehensive explanation of the total amount of cost that form part of their investment including the information associated with the source of financing. Lastly the business must assess all the information through capital budgeting methods like payback given every particular condition, of which capital investment will provide faster payback and offer the most profit.
References
O’Connell, B. (2018, December 18). What is cost of capital and why is it important for … – thestreet. TheStreet. Retrieved February 19, 2023, from https://www.thestreet.com/investing/what-is-cost-o…
Pinkasovitch, A. (2022, December 20). Capital budgeting: What it is and how it works. Investopedia. Retrieved February 18, 2023, from https://www.investopedia.com/articles/financial-th…