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a) Assume that the discount rate is r= 0.03 and that the earnings impact at age 28, $3,282, remains the same from age 29 until

a) Assume that the discount rate is r= 0.03 and that the earnings impact at age 28, $3,282, remains the same from age 29 until retirement at age 64. Assuming that time begins at age 19, calculate the present value of the impact of the Pathways program on lifetime (age 19-64) earnings.

(b) Assume that the discount rate is r= 0.03 and that the welfare receipt impact at age 28, $-478, remains the same from age 29 until retirement at age 64. Assuming that time begins at age 19, calculate the present value of the impact of the Pathways program on lifetime (age 19-64) social assistance (welfare) receipt.

(c) The present value of the costs of the Pathways program is $14,935 per student. Does the present value of the benefits of the Pathways program exceed its costs? Based on your calculations, do you recommend expanding the program?

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