Question
A finance student has completed his undergraduate degree and has been accepted into a one-year postgraduate finance program. Upon completion of this degree he will
A finance student has completed his undergraduate degree and has been accepted into a one-year postgraduate finance program. Upon completion of this degree he will earn an additional $2,000 a year for each of the next 40 years. He will give up $18,000 income that he would otherwise earn and sustain additional costs of $2,000 for educational materials such as books. He cares only about the financial implication of his decisions. If the interest for borrowing and investing is the same, at amount 6%, should he accept the offer into the business program? Explain
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