Question Completion Status: Suppose you have just graduated from college and are deciding on a career. Your four career options, along with your salary in each of the four earning periods, are displayed in the below table. Assume that any career will only last four periods before retirement. Yoga Instructor Accountant H.S. Teacher OBGYN t = 0 t=1 t=2 t = 3 50,000 50,000 51,000 53,000 68,000 71,000 74,500 78,000 59,000 59,000 59,000 60,000 0 35,000 200,000 271,000 (a.) Assume your discount factor s = 0.90. Interpret this assumption. b. Find the value of the interest rate r that corresponds to your discount factor. Question 2 Suppose you have just graduated from college and are deciding on a career. Your four career options, along with your salary in each of the four earning periods, are displayed in the below table. Assume that any career will only last four periods before retirement Yoga Instructor Accountant H.S. Teacher OBGYN t=0 t=1 t=2 t = 3 50,000 50,000 51,000 53,000 68,000 71,000 74,500 78,000 59,000 59,000 59,000 60,000 0 35,000 200,000 271,000 c. Assuming 8 = 0.90, calculate the net present value (NPV) of becoming an OBGYN and of becoming an accoun- tant. Which career do you prefer? d. Will the internal rate of return (IRR) for becoming an OBGYN as opposed to an accountant be greater or less than your answer to Exercise 11(b)? e. Now assume 8 = 0.50. Calculate both the corresponding interest rate and the net present value (NPV) of becoming an OBGYN and of becoming an accountant. Now which job do you prefer