Business, 07.08.2021 01:30 icantspeakengles

Suppose that an individual is 20 years old and is contemplating on attending the university for a 4 year degree. The cost of attending the university (implicit and explicit) is $20,000 per year for 4 years starting right now. The additional benefit of the college education (implicit and explicit) is $5,000 per year, which he will receive from age 25 until age 65. a. If the interest rate is 5 percent, use the NPV analysis to determine if he should or should not go to college. Show your calculations.
b. If the interest rate is 8 percent, use the NPV analysis to determine if he should or should not go to college. Show your calculations.

Answers: 2

Show answers

Other questions on the subject: Business

Business, 21.06.2019 23:00, emilyswinge4421

James has set the goal of achieving all "a"s during this year of school. which term best describes this goal

Answers: 2

continue

Business, 22.06.2019 11:00, PanjiUR9220

What is the correct percentage of texas teachers charged with ethics violations each year?

Answers: 2

continue

Business, 22.06.2019 12:30, imamnaab5710

Consider a treasury bill with a rate of return of 5% and the following risky securities: security a: e(r) = .15; variance = .0400 security b: e(r) = .10; variance = .0225 security c: e(r) = .12; variance = .1000 security d: e(r) = .13; variance = .0625 the investor must develop a complete portfolio by combining the risk-free asset with one of the securities mentioned above. the security the investor should choose as part of her complete portfolio to achieve the best cal would be a. security a b. security b c. security c d. security d

Answers: 3

continue

Business, 23.06.2019 01:00, ayowazzzgood

Motonous corporation has completed its fiscal year and reported the following information. the company had current assets of $153,413, net fixed assets of $ 412,331, and other assets of $7,822. the firm also has current liabilities worth $65,314, long-term debt of $178,334, and common stock of $162,000. how much retained earnings does the firm have?

Answers: 2

continue

You know the right answer?

Suppose that an individual is 20 years old and is contemplating on attending the university for a 4...