Explain and illustrate in graph what do you need to consider in order to determi

Question

Explain and illustrate in graph what do you need to consider in order to determine whether to invest in a one year masters program knowing the following: As a recent college graduate you are currently employed and making $40,000/year; with the one-year masters you will get a job that pays $60,000/year; the cost of tuition and other educational related expenses for this master program is $20,000/year. Assume that the rate of return on the investment above is 12%, would you enroll in this program knowing that another investment pays a 9% interest rate? (graph not needed} Assume you are considering moving to a different location, and you are certain about the potential earning gains from migration. You also have a really good idea about the opportunity and direct costs if moving. Based on the previous information, you have calculated a rate of return to migration of 12%. Would you be indifferent between enrolling in the program (from .) and migrating? Why? (graph not needed)

Explanation / Answer

b) knowing that another investment pays a 9% interest rate still i will enroll in that progrramme with 12% interest rate because that will give me more options in my career and i will earn more after persuing thta program. so sometimes even if the interest rate is high we take the risk of investment if the return will be greater.

C) Yes i would be indiffrent but then again if the rate is same but moving to a different place is not the solution it would be temporary, what i woul think of having a degree of masters that will help me grow in the same place.

Related Questions

Navigate

• Browse (All)
• Browse E
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.