This exercise is based on this Forbes article. The headlines Price of College inowsing Almost a Times Faster Than Wages Here is the relevant information for our exercise (the data is taken from various sources, all numbers are in 2018 dollars, so they have been adjusted for Inflation. 1989 2019 Average Cost of 4 years College (adjusted for inflation) $52,892 $104,480 Wage, College Graduate (adjusted for inflation) $47,200 $50,390 Wage, High School Graduate (adjusted for inflation $44,302 $27,708 Time spent working during College Expected age of retirement Average College Graduation Age The overal question we want to answer is: is College Education a good investment in 2019? Was it a better investment in 19892 Answering these questions, assume that during College students can earn the average high school wage (but working only 25% of the available hours in a year). Assume a discount rate of 5%. Assume that there is no real wage growth over time so the estimates of the investment will be conservativel 1. What was the present discounted value of increased earnings from getting a college degree in 1989? 2. What was the cost of College in 19897 (Calculate the present discounted value over 4 years, including both direct costs and missed earnings, from the perspective of a students that was about to start college in 1989) 3. What was the cost of College in 2019? (Calculate the present discounted value over 4 years, including both direct costs and missed earnings, from the perspective of a students that was about to start college in 2019) 4. What was the Net Present Value of the Investment in College in 1989? 5. What was the Net Present Value of the investment in College in 2019? 6 What was the present discounted value of increased earnings from getting a college degree in 2019 Take the perspective of a students that was about to start college in 20191 This exercise is based on this Forbes article. The headlines Price of College inowsing Almost a Times Faster Than Wages Here is the relevant information for our exercise (the data is taken from various sources, all numbers are in 2018 dollars, so they have been adjusted for Inflation. 1989 2019 Average Cost of 4 years College (adjusted for inflation) $52,892 $104,480 Wage, College Graduate (adjusted for inflation) $47,200 $50,390 Wage, High School Graduate (adjusted for inflation $44,302 $27,708 Time spent working during College Expected age of retirement Average College Graduation Age The overal question we want to answer is: is College Education a good investment in 2019? Was it a better investment in 19892 Answering these questions, assume that during College students can earn the average high school wage (but working only 25% of the available hours in a year). Assume a discount rate of 5%. Assume that there is no real wage growth over time so the estimates of the investment will be conservativel 1. What was the present discounted value of increased earnings from getting a college degree in 1989? 2. What was the cost of College in 19897 (Calculate the present discounted value over 4 years, including both direct costs and missed earnings, from the perspective of a students that was about to start college in 1989) 3. What was the cost of College in 2019? (Calculate the present discounted value over 4 years, including both direct costs and missed earnings, from the perspective of a students that was about to start college in 2019) 4. What was the Net Present Value of the Investment in College in 1989? 5. What was the Net Present Value of the investment in College in 2019? 6 What was the present discounted value of increased earnings from getting a college degree in 2019 Take the perspective of a students that was about to start college in 20191