If we assume that a golfer plays twice a week for $50 per round, 20 weeks per year from the time he or she is 31 until age 70 (40 years), and loses 2 balls per round at $2 per ball, what is the net present value of not being a golfer?
Assume a discount rate of 8% per year, and assume all costs are incurred at the end of the year.