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1. A college graduate is expected earn about $25,000 more a year than a high school graduate over a 40 year working life. A typical
1. A college graduate is expected earn about $25,000 more a year than a high school graduate over a 40 year working life. A typical college education has an opportunity cost of $40,000 a year for 4 years. Assuming the appropriate discount rate is 6%, determine the NPV of going to college. (There is a total of 44 years, 4 while in college and 40 working. Assume the college costs are paid at the end of the year as is the difference in the earnings between a college grad and high school grad.)
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