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2/ Floyd is now working in a job that pays him $8,000 per year. He is contemplating a one year automobile mechanics course that costs
2/ Floyd is now working in a job that pays him $8,000 per year. He is contemplating a one year automobile mechanics course that costs $1,000 for books and tuition. Floyd estimates that the course will increase his income to $13,000 in each of the three years following the completion of the course. Floyd plans to retire at the end of those three years. The current interest rate is 10 percent. Is it economically rational for Floyd to enroll in the course?
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