Consider an individual who will invest a total of $15,000 in direct and indirect costs for training in order to increase earnings by $22,500 for the next year. Suppose the interest rate is 10%. If this person plans to retire the following year, the net present value of this investment is closest to: a.$6,818 b. $7,500. c. $5,454 d. $9,750

Consider an individual who will invest a total of $15,000 in direct and indirect costs for training in order to increase earnings by $22,500 for the next year. Suppose the interest rate is 10%. If this person plans to retire the following year, the net present value of this investment is closest to: a.$6,818 b. $7,500. c. $5,454 d. $9,750

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter17: Capital And Time

Section: Chapter Questions

Problem 17.2P

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