Assume The Total Cost Of A Four Year College Degree Is 400 000 Including The Opportunity Cost Of Not Working And Intere 1 (23.04 KiB) Viewed 32 times
Assume The Total Cost Of A Four Year College Degree Is 400 000 Including The Opportunity Cost Of Not Working And Intere 2 (23.04 KiB) Viewed 32 times
Assume the total cost of a four-year college degree is $400,000 including the opportunity cost of not working and interest paid on any student loans. Assume the benefit of a four-year college degree is a $1.5 million increase in the present value of lifetime earnings for those who graduate. Assume someone who attends college but does not graduate bears the full cost but receives none of the benefit. a. What is the expected value of a college degree at time of enrollment for a student who has an 80% chance of graduating? b. What is the expected value of a college degree at the time of enrollment for a student who has a 20% chance of graduating?
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