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You expect that each year of college will increase the present discounted value of your lifetime earnings by 5%, each year of a master's degree

You expect that each year of college will increase the present discounted value of your lifetime earnings by 5%, each year of a master's degree will increase the present discounted value of your lifetime income by 8% per year and a PhD will increase the present discounted value of your lifetime income by 1% per year. If your discount rate is 4%, how much education should you get? Explain.

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