Question
Use the following scenario to answer questions 45-47. Each is worth 4 points. Show or explain your work for partial credit. Draymond wants to take
Use the following scenario to answer questions 45-47. Each is worth 4 points. Show or explain your work for partial credit. Draymond wants to take a 2-year training course that costs $5,000 each year. His company promises a $1,000 raise for anyone who takes the course. Draymond currently makes $70,000 and will retire 10 years after completing the training. He will continue to work while he takes the training course. Assume a discount rate of 0.07.
What is the Present Value of the stream of income after completing the training (only enter a number with no dollar sign)? Does it make sense for Draymond to take the training course? Why or why not?
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