Answer:
Become Accountant as the NPV is more.
Explanation:
As for the information provided:
There are two alternatives:
Provided interest rate = 10%
Discounting factor period 1 = 0.909
Period 2 = 0.826
Now, the options are
1 Become accountant
Outflow = $15,000 in period 1 = $15,000 0.909 = $13,635
Inflow = $53,800 in period 2 = $53,800 0.826 = $44,438.8
Net Present Value = $44,438.80 - $13,635 = $30,803.80
2 Become artist
Outflow = $5,000 in period 1 = $5,000 0.909 = $4,545
Inflow = $42,000 in period 2 = $42,000 0.826 = $34,692
Net Present Value = $34,692 - $4,545 = $30,147
Since NPV is more of accountant it shall be chosen.
Note: since not provided assumed the cash flows incur at end of the year.