o ????-???201 80529.ppt [????1 -PowerPointon?????) ????????? e | :--?? | t ! ??1

Question

o

????-???201 80529.ppt [????1 -PowerPointon?????) ????????? e | :--?? | t ! ??11A???? [31????. ???? ???SmartArt". f10% n ()??????? ,???? CP???? - ?? ?? Questions for Thought 1. Suppose the net present value of an educational investment is highly positive. What can you infer about the investment's internal rate of return relative to interest cost of borrowing? 2. Comment on the following statements: a) podngwe whoekseare less geographically mobile than (b) An economic recession tends to stimulate college enrollments (c) The age-earnings profiles shown earlier, clearly indicate that people with more education earn more than people with less education; therefore, personal spending on education is always a good investment. 4-32 ?? 1?? ? 88 [H SHOT ON MI 6 MI DUAL CAMERA

Explanation / Answer

1. A positive net present value implies that the present value of future cash flows is positive. These cash flows can be defined in terms of inflows (i.e. money coming through the job) and outflows (i.e. money going out due to education loan).
Thus a positive net present value of that education loan implies that the internal rate of return must be greater than the interest cost of borrowing.

PS: According to Chegg rules, in the event of multiple questions, only the first one is attempted.

Related Questions

Navigate

• Browse (All)
• Browse O
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.