Additional future earnings rounded up to two decimal places

Reference no: EM13684336

Assignment Presume that you are considering whether to enrol in a summer computer-training program that costs $2500. If you take the program, you will have to give up $1500 of earnings from your summer job. You decide that the program will increase your earnings by $500 per year for each of the next ten years. Beyond that, it is not expected to affect your earnings. If you take the program, you will have to borrow the funds at an 8 percent interest rate. From a strictly monetary viewpoint, must you enrol in the program? Specific Instructions As your post for this discussion addresses the following specific questions

1. State the direct costs. If there are no direct costs, state that total direct costs = $0.

2. State the opportunity costs. If there are no opportunity costs, state that total opportunity costs = $0.

3. State the total costs (present value). If there are no total costs, state that total costs = $0

4. Compute and state the present value of the additional future earnings rounded up to two decimal places.

5. Must you enrol in the program? Describe why or why not. Note that your explanation must refer to calculations guiding your decision.

Reference no: EM13684336

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