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Jeff Winger is deciding whether to attend school or not. Assume that we have a four period model. If he attends school, he will spend 45,000 in the rst period to pay for the schooling costs. In the second period, he starts his job and earns $75,000. In the third period he gets a raise to $105,000. In the fourth period, he gets an additional raise to $135,000. If Je decides to not attend school, he earns $50,000 the rst period, $55,000 the second period, $60,000 the third period, and $65,000 the fourth period.
(a) Calculate the present value of going to school and not going to school assuming his discount rate is 10%.
(b) Should Je attend school? Justify your answer
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Mountain Man Brewing, a family owned business where Chris Prangel, the son of the president joins. Due to increase in the preference for light beer drinkers, Chris Prangel wants to introduce light beer version in Mountain Man. An analysis into the la..
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