Why does the NPV of a college education tend to be positive but relatively small

Question

Why does the NPV of a college education tend to be positive but relatively small? O A. O B. Most of these studies are based on nominal interest rates, so the NPV is smaller O c. College students tend to be young and poor, so their opportunity cost of capital is O D. College graduates typically have limited on-the-job skills, so their initial returns There are few barriers to entry for a college education. than we would achieve under real interest rates. high. from the education investment tend to be small.

Explanation / Answer

Most of these studies are based on Nominal interest rates, so the NOV is smaller than we would achieve under real interest rate

Answer-B

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