Question
Two people, person A and person B, have graduated high school and are considering entering college for four years.Both people have the same discount rate
Two people, person A and person B, have graduated high school and are considering entering college for four years.Both people have the same discount rate and would pay the same tuition.Person A would earn $20,000 per year as a high school graduate and $40,000 per year as a college graduate.Person B would earn $50,000 per year as a high school graduate and $70,000 per year as a college graduate.Both people maximize the present value of income.Which person will be more likely to attend college?(Hint: consider the costs and benefits for each person
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