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show by hand A young high school graduate just turned 18 is contemplating future career alternatives based on the probable salaries to be earned. Which
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A young high school graduate just turned 18 is contemplating future career alternatives based on the probable salaries to be earned. Which of the alternatives yields the higher present worth (assuming i = 10%, expenses occur at BOY: while income occurs at EOY)? a) Go directly to work and continue until age 65, starting salary $10,000 per year increasing at 5% per year. b) Invest two years and $6,000 per year in a junior college education. Work the remaining years until age 65. Starting salary of $14,000 per year increasing 6% per year. c) Invest four years and $6,000 per year in College education. Work remaining years until age 65, starting annual salary of $50,000 per year increasing 8% per year. d) Invest five years and $6,000 per year in seamless graduate M.S. program and earn a starting salary of $52,000 per year increasing 10% per yearStep by Step Solution
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