Calculate the net present value of his migration

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(Use Excel) Consider Carl, a 26 year old native San Diegan who has just graduated from SDSU with a B.A. in Economics. He has received two job offers, one in San Diego that pays him $50,000/year and another in Miami, Florida that will pay him $55,000/year.
He is planning on working in the position, regardless of the location, until he finishes his 20th year of work. His added monetary costs the first 4 years in Miami will be $20,000 each year and he expects psychic costs totaling $2,000 the first year only. He
can borrow at the treasury rate of 2.5% (i.e. discount rate). Using the information provided, answer the questions below. You can assume all costs and benefits areincurred/accrued at the end of each year. (10pts)
a. Calculate the net present value of his migration.
b. Calculate the internal rate of return of his migration.
c. Based on the NPV and IRR, should he migrate? Why?
d. Attach a printout of the Excel spreadsheet with data and results.

Reference no: EM13547876

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