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Lesechka [4]
3 years ago
8

gdaniel is working in a job that pays $18,000 per year. He is considering a one-year automobile mechanics course that costs $1,0

00 for books and tuition. He would stop working for a year while he attends this course. Daniel estimates that this course will increase his income to $23,000 in each of the three years following completion of the course. At the end of those three years, Daniel plans to retire to a commune in Tucson, AZ. The current interest rate is 10 percent. Is it economically rational for Daniel to enroll in the course? Explain and justify your answer.
Business
1 answer:
jeyben [28]3 years ago
5 0

Answer:

It is not economically rational for Daniel to enroll in the course

Explanation:

Increase in income = $23,000 - $18,000 = $5,000

i = 10% = 0.1

NPV = -(18,000 + 1,000) + 5,000/(1.1)^1 + 5,000/(1.1)^2 + 5,000/(1.1)^3

NPV = -17,000 + (4545.45 + 4132.22 + 3756.74)

NPV = -17,000 + 12,434.41

NPV = -4,565.59

Conclusion: Since NPV is Negative. Therefore, it is not economically rational. So the answer is NO.

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Bánh bao (literally "dumplings") is a Vietnamese bun primarily based on the Cantonese da bar added to Vietnam through Cantonese immigrants. it is a ball-formed bun containing red meat or fowl meat, onions, eggs, mushrooms, and greens, in Vietnamese delicacies.

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2 years ago
If a salesperson sells 34 pairs of jeans, 126 t-shirts, and 40 jackets, what fraction of the total number of items sold do the j
tino4ka555 [31]

Answer:

1/5

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marusya05 [52]

Answer:

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