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A person is considering taking one-year course of training for which they will pay $10,000. They are currently earning $20,000 a year. If they take
A person is considering taking one-year course of training for which they will pay $10,000. They are currently earning $20,000 a year. If they take the course their earning will increase by 12,000 in each of the three years after completing the course. The person can borrow at 10%.What is the net present value of the course of training and the associated earning flow? Should the person take the course?
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