Question

Research was conducted by professor jobs to check which one program out of three given programs is the optimal choice for a student. the three options are a 6​ month, a 12​ month, or a 15 month program. important information considered by the professor in his research is how much a student pays in tuition and fees for a given program within different time spans. the program is​ intensive, so it can be completed faster but at higher costs. the three programs yield the same benefit for the student. the program can be completed in 6​ months, 12​ months, or 15 months. the tuition and fees are​ $38,600, $35,000 and​ $28,600 respectively. professor jobs assumes the opportunity cost of time to a student for the program is​ $2,000 per month

Answer 1

We have that the student gains the same reward completing any one of the three programs; thus the program with the least cost is optimal. We have that the first program costs 38.600$. Nevertheless, we need to also account for the lost opportunity, which is 2000$ per month. Thus, instead of going to the program, the student could have saved 38.600$+6*2000$=50.600$. Now for the 12month program, we have similarly 35.000$+12*2000$=59.000$. Finally, for the 15month program, the calculation yields: 28.600$+15*2000$=58.600$. We see that the best program to attend is the 6-month one (lowest total opportunity cost); despite it being the most expensive one, after completing it the student can make up for it by grabbing the other opportunity and making 2000$ per month (in the other programs, the student cannot work for 6 or 9 months more than this program).