Question
You are about to graduate from college and are trying to decide whether to go to graduate school to become an economist or get a
You are about to graduate from college and are trying to decide whether to go to graduate school to become an economist or get a job as a hospital administrative assistant. The salary in the three earnings periods are as follows:
Period 0
Period 1
Period 2
Economist
-7
5
9
Admin. Asst.
3
3
3
- Let's say your discount factor, , is 0.90.Calculate the net present value (NPV) of becoming an economist and becoming a hospital administrative assistant. Which career do you prefer?
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Money Banking and Financial Markets
Authors: Laurence M. Ball
2nd edition
1429244097, 978-1429244091
