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Hi there... would really appreciate any guidance to help facilitate my understanding of this problem.
"Individuals who choose to attend school have made a decision to invest in human capital. Use the concept of net present value analysis to explain why you are attending school. "
While studying this question... I took the time value of money, present value, and net present value into consideration.
Therefore, assuming that college costs will continue to rise, and that an individual will make more money over time with a college education...am I correct in asserting that all else being equal, the opportunity cost of delaying working full time to pay for and graduate college is an investment that will yield a positive net present value? My thoughts are NPV= PV (college education) - C (cost of paying for college now... versus the opportunity cost of waiting and paying more in the future) = Positive net present value.
Thank you for your time to help me ensure I understand this concept.
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