Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

We have BS-MS Accelerated Program at UMass Dartmouth where you can obtain a graduate degree in one year, instead of 2yrs valid for traditional programs.

image text in transcribed

We have BS-MS Accelerated Program at UMass Dartmouth where you can obtain a graduate degree in one year, instead of 2yrs valid for traditional programs. A student wants to decide whether to go to a graduate school or not. Going to graduate school will cost in average $30,000 per year taking about 1 years. Studying also means that the student will not receive any income for the next year, an opportunity lost costing $60,000 per year. However, a graduate degree worth an extra $23,000 per year in income. Consider student will work for 30 years after graduating. Create the cash flow diagram for this student assuming the student decided to continue to graduate prigram. If MARR is 8%. Find Present Worth, Future Worth for this decision. Find external rate of return for this decision. We have BS-MS Accelerated Program at UMass Dartmouth where you can obtain a graduate degree in one year, instead of 2yrs valid for traditional programs. A student wants to decide whether to go to a graduate school or not. Going to graduate school will cost in average $30,000 per year taking about 1 years. Studying also means that the student will not receive any income for the next year, an opportunity lost costing $60,000 per year. However, a graduate degree worth an extra $23,000 per year in income. Consider student will work for 30 years after graduating. Create the cash flow diagram for this student assuming the student decided to continue to graduate prigram. If MARR is 8%. Find Present Worth, Future Worth for this decision. Find external rate of return for this decision

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Options Futures And Other Derivatives

Authors: John C. Hull

4th Edition

0130224448, 9780130224446

More Books

Students also viewed these Finance questions