More fun with IRR. Refer to Table 5.3 about the payouts available at different jobs. a Find
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More fun with IRR. Refer to Table 5.3 about the payouts available at different jobs.
a Find the IRR for becoming an ophthalmologist as opposed to a professional sports star. Compare your result with the IRR from the previous exercise and interpret this difference in terms of the concept of patience.
b Find the IRR for becoming an accountant as opposed to an ophthalmologist. How can you interpret a negative IRR?
c The IRR for becoming an accountant as opposed to a starving artist is infinite.
Explain why this makes sense.
d Does the NPV of salaries in the various professions tell you everything you need to know about picking a career?What does this calculation leave out?
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