Case Study Time Value of Money (case 1)* Julie, while thinking about her coming holyday might

wash out by practical fact. I just got burned out. A year came where I said, I've just got to go. I had two students who were really tough and took a lot of my time andwere emotionally drainin g. I remember one day I was involved in adistrict training program for cognitive coaching and 1 was learningabout that so I was out of the classroom and had a substitute for anhour or two. I remember I came back and he had rigged up the jumprope over the door and had a chair and w as putting a noose around hisneck and talking about killing himself. I just was totally overwhel medby his needs and feeling like I was stressed out all the time. I heard myself reacting to things in ways that I didn't want to be. I thought, This is not the way to talk to these kids. I felt like I needed to getsome better perspective. I need ed to take a break. (Julie, open-ended interview, Time 4, 1993) Julie Devine is of Hispanic heritage. She is the mother of two young children and ismarried to an editor. The story of Julie's pedagogical development and life as ateacher is different from the othe rs that follow. One of the main reasons for this isthat she left classroom teaching after 5 years to e nter the private sector. AlthoughJulie remained in fields related to education, working first at a na tional textbookpublishing company and then for a small educational software company, thedevelo pment of her pedagogical understandings differs somewhat from the otherswho remained in the c lassroom. Her story provides wonderful insights into whysome teachers leave the teaching profess ion while others remain in the classroom. Now, as she had quit from the job, she had received $10,665 from her provident fund. Once she thought that she will put two third of the amount in the bank as Fixed term deposit with an interest rate of 8.75% for 8 years and the rest she will consume today for a short trip to the beautiful Island Baselli which is near to Cardiff Port. She was eager for holiday for last 2 years. If Julie want to book that trip, she need to deposit the money today (March 10, 1993) to the travel agents bank account by 5 pm in Netwest bank, Central London. Meanwhile, she had got a proposal for business investment from her cousin, Toni. Toni advised her to put all her provident fund to the project where Toni and his 2 partner in going to open a new IT firm. He will promise to make her money double within 8 years. As Julie had to choose one option by today noon, she called her friend Thomas who is a financial consultant in a private firm. Thomas asked for 5 minutes time and assure her that he will call back her within 10 minutes. Thomas told her to accept her cousins proposal which will be beneficial for her in the future. Questions: 1) Did Thomson give her a correct advice? If yes/no, explain the reason.

2) Which option would you advise to Julie? Critically evaluate your opinion. Also consider her todays consumption.
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Prepared by Kashfia Sharmeen, use as a lecture material in Financial Management and Practice Course, MBA.