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Floyd is now working in a job that pays $8000 per year. He is thinking of a one-year auto mechanics course that costs $1000 for books & tuition. He cannot work while studying. He estimates that the course will increase his income to $13,000 in each of the 2 years following completion of the course, at which time he will retire. The current interest rate is 10%. Is it economically rational for Floyd to enroll in the course? Show your work.

Reference no: EM132324041

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