Question

Estimate the present value of the costs and benefits for you of attending college. Be sure to enumerate and defend all the assumptions you are making. a. Estimate the present value of the explicit costs of getting a degree for an average student. Be sure to explicitly state your assumptions.

Research and Estimate the present value of the difference in income between earning a college degree and starting work after high school

Answer 1

The net present value which represents the cumulative value of the present costs and benefits is postive of me attending college. The initial cost is the cost incurred at the time of admission ie big fee , but it generates positive benefits for eg - understanding higher academic principles , growing factors to earn and develop in future . Thus attending college is a future investments where net present value is positive

The present value of the difference in income between earning a college degree and starting work after high school is substantially positive. The college degree alllows the individual to earn more due to developed skills in college while working after high school gives only basic income.