12:20 PM Wed Oct 7 $27% +

12:20 PM wed Oct 7 < Back PS 3 AU20 10-5-20.docx c. I for both days d. 0.90, 0.89 8. What is the present value of Katelynn's utility? a. 300 b. 189.55 c. 291.35 d. 188.65 Use the following scenario to answer questions 9-10. Mike is trying to decide whether he should take night classes to complete his degree. He currently works full time and earns $58,000 a year and estimates he will earn this each year until he retires in 15 years. He also estimates that with a degree he will earn $65,000 a year, once he finishes the degree. If he takes night classes he will complete his degree in four years, and the cost of classes each year will be $8,000. 9. Use a rate of return of 0.05 (5%) to calculate the net present value of Mike completing his degree. HINT: his income for the first four years (while he attends night classes) is S58,000, and the total number of periods is 15. a. $649,856 b. $677,361 c. $621,489 d. $589,332 10. Compare your NPV from question 9 to the NPV for not completing night classes. Based on this rate of return (0.05), does it make sense for Mike to take night classes? a. No b. Yes c. Need more information to answer this question Dashboard Calendar Notifications 9 Inbox