Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

What is the Net Present Value (NPV) and Internal Rate of Return (IRR) of spending $25,000 today on graduate school when you earn $40,000/ year

image text in transcribed
What is the Net Present Value (NPV) and Internal Rate of Return (IRR) of spending $25,000 today on graduate school when you earn $40,000/ year today and will earn $44,000 /year for the next 35 years after grad school. Assume you could invest this money elsewhere and earn 12% ? NPV=$7,702.02;IRR=15.91% NPV=$92,634.32;IRR=126.87% NPV=$334,722.17;IRR=176% NPV=($32,702.02);IRR=(75.35%) NPV=($7,702.02);IRR=15.91%

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_2

Step: 3

blur-text-image_3

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

The Oxford Handbook Of Computational Economics And Finance

Authors: Shu-Heng Chen, Mak Kaboudan, Ye-Rong Du

1st Edition

0199844372, 978-0199844371

Students also viewed these Finance questions