1. Investment Payback Period. Cynthia is 27 years old with a college degree and is interested in returning to school to earn a graduate degree in nursing which will take 4 years working part time while attending school in evenings. She currently earns $48,000 per year as a nursing administrator. If she cuts her job to part time as a nursing administrator, she will earn $20,000 per year. She will use student loans to fund the costs each year of tuition, books and fees, expected to be $11,000 per year for a part time student and will have an additional $2,000 per year in household expense loans on her credit card. Cynthia believes she can increase her income by $24,000 per year after graduation. Use an investment payback table to determine Cynthias Investment Payback Period.

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Work:

Investment Payback Period
Expense Item	Amount
Lost-Income
Household Expense Loans
College Tuition, books and fees
Total Costs
Increase in Income
Payback Period