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2. Floyd is now working in a job that pays $36,000 per year. He is contemplating a one-year automobile mechanics course that costs $2,000 for

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2. Floyd is now working in a job that pays $36,000 per year. He is contemplating a one-year automobile mechanics course that costs $2,000 for books and tuition. Floyd estimates that the course will increase his income to $46,000 in each of the three years following completion of the course. At the end of those three years, Floyd plans to retire to a commune in Boulder, Colorado. The current interest rate is 10 percent - - this is your discount rate (Wow. What are the odds that Floyd would have the same discount rate as Masha and Neil?!?! It seems very unlikely that all 3 of them would discount future payments at exactly the same rate. He may be a good partner candidate if they ever break up and/or decide to add another party to their union). a. Is it economically rational for Floyd to enroll in the course? b. Graph Floyd's age-wage profile (wage/salary on the y-axis, age on the x- axis) for both scenarios (going to school and not going to school)

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