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Sarah lS considering to obtain two years of training in computer skills. Her Job currently pays her $45,000 per year, and she plan to work

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Sarah lS considering to obtain two years of training in computer skills. Her Job currently pays her $45,000 per year, and she plan to work for t e next 30 years. If she goes through the training, she has to pay $ g for tuition, but her posttraining wage will be $60,000 per year or 28 years. In this scenario, the rate of discount that equates the lifetime present value of not going to training and going to trainings 7.0%. For each of the parts below, choose how the; rate of discount that equalizes year the two options would change? Mb): %)E+ gr l" .. 1000 ' _(,..-\\ l L- . . _ . Won'- (H (H007 W000\") 0 Each year of training still costs 55an work still pays $45,000, but each year of posttraining work now pays $80,000. 4' o All prices stay the same, but the training becomes more difficult so it will take three years for Sarah to complete rather than two years. 0/ o All prices stay the same, but Sarah anticipate herself taking a few years off to take care of her children in the next few years. .g,

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