Consider  worker who is offered a salary bonus of $2,000 for each of the next two years if he or she erolls in a job training prgram this year. The total cost to the worker, including any forgone earnings, is $3,500. a. What is the internal rate of return on this investment? b. Would this be a good investment for someone with a discount rate of 6%

Managerial Economics: A Problem Solving Approach
5th Edition
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Chapter5: Investment Decisions: Look Ahead And Reason Back
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Consider  worker who is offered a salary bonus of $2,000 for each of the next two years if he or she erolls in a job training prgram this year. The total cost to the worker, including any forgone earnings, is $3,500.

a. What is the internal rate of return on this investment?

b. Would this be a good investment for someone with a discount rate of 6%

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