Suppose Jenny is considering getting a master's degree in English. The program takes 1 year and costs $10,000. After s
Posted: Sun Jul 03, 2022 1:06 pm
Suppose Jenny is considering getting a master's degree in English. The program takes 1 year and costs $10,000. After she completes her degree, she will earn $20,000 additional to what she is currently making. After two years, she will write a best selling novel and never have to worry about money again. Assume the relevant interest rate is 10%. Should Jenny enroll in the master's program? Why?
*Assume no opportunity costs of education, only direct costs.
*Assume no opportunity costs of education, only direct costs.