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Consider an 18-year old who is about to start a three-year course of study. The total...

Consider an 18-year old who is about to start a three-year course of study. The total cost of the course is $18,000, payable in advance. The returns take the form of annual $5,000 earnings premiums (paid at year-end) that the individual receives from age 21 through to age 25. Calculate the net present value of this investment assuming the discount rate of 5%. Should the project go ahead?
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Answer #1

Project can be accept because the net Present Value is positive

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