Answer the following questions based on the Excel spreadsheet Spreadsheet for extra credit, located in the Problem set directory of the Blackboard course website. Spend a few minutes familiarizing yourself with the sheet before you begin your work. Note the assumptions we begin with:

Out of pocket cost of year of college $15,000 College earnings (annual): $60,000 Non-college earnings (annual): $35,000 College takes 5 years and students do not work while in college Work life is 50 years following high school

Putting new numbers into the Assumptions in column M will automatically change the numbers in the calculations and the Present Discounted Values (PDV) for each year in Columns E and I, and in the sums in M5 and M6.

2. What is the internal rate of return (approximated to the nearest hundredth, or better)? Use trial and error to find it.