Calculating net present value Let's say Sam just finished high school and is deciding whether to enroll in a two year nursing program at the local community college. The cost of the program is $10,000 per year for tuition and supplies Because the program is so intensive, Sam cannot work graduates. if he enrolls in the program until after he Sam believes if he doesn't enroll in the program, he'll earn $60,000 per year. He believes that if he completes the program, he'll earn $110,000 per year once he starts working. Because of visa issues, Sam is only allowed to stay in the country for 5 years (he will not work when he returns to his home country) Answering the following questions showing your work, i.e. what is the net present value? You are encouraged to use excel (or other stat program) for the calculations, just be sure to write your final NPV. a. b. C. d. Set up what Sam's net present value calculation should look like. (2pts) At an interest rate of 3% (-0.03), would you suggest that Sam enrolls in the program? (2pts) At an interest rate of 2%, would you suggest that Sam enrolls in the program? (2pts) What if Sam's visa allowed him to stay for an extra year at the original 3% interest rate? (2pts)