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.

Kubin company’s relevant range of production is 18,000 to 22,000 units. when it produces and sells 20,000 units, its average costs per unit are as follows: average cost per unit direct materials $ 7.00 direct labor $ 4.00 variable manufacturing overhead $ 1.50 fixed manufacturing overhead $ 5.00 fixed selling expense $ 3.50 fixed administrative expense $ 2.50 sales commissions $ 1.00 variable administrative expense $ 0.50 required: 1. for financial accounting purposes, what is the total amount of product costs incurred to make 20,000 units? 2. for financial accounting purposes, what is the total amount of period costs incurred to sell 20,000 units? 3. for financial accounting purposes, what is the total amount of product costs incurred to make 22,000 units? 4. for financial accounting purposes, what is the total amount of period costs incurred to sell 18,000 units?