One aspect of obtaining an engineering education is the prospect of improved future earnings in comparison to non-engineering graduates. Sharon Shay estimates that her engineering education has a $85,000 equivalent cost at graduation. She believes the benefits of her education will occur throughout 25 years of employment. She thinks that during the first 8 years out of college, her income will be higher than that of a non-engineering graduate by $25,000 per year. During the subsequent 10 years, she projects an annual income that is $35,000 per year higher. During the last 17 years of employment, she estimates an annual salary that is $52,000 above the level of the nonengineering graduate. If her estimates are correct, what rate of return will she receive as a result of her investment in an engineering education?
One aspect of obtaining an engineering education is the prospect of improved future earnings in comparison to non-engineering graduates. Sharon Shay estimates that her engineering education has a $85,000 equivalent cost at graduation. She believes the benefits of her education will occur throughout 25 years of employment. She thinks that during the first 8 years out of college, her income will be higher than that of a non-engineering graduate by $25,000 per year. During the subsequent 10 years, she projects an annual income that is $35,000 per year higher. During the last 17 years of employment, she estimates an annual salary that is $52,000 above the level of the nonengineering graduate. If her estimates are correct, what
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