A person is considering taking a one-year training course for which he will pay $10,000. They currently earn $20,000 a year. If they take the course, their earnings will increase by 12,000 in each of the three years after completing the course. The person can borrow at 10%. What is the net present value of the training course and the associated revenue stream? Should the person take the course?

Answer rating: 100% (QA)

To determine whether the person should take the training course we need to calculate the net present ... View the full answer