QUESTION 4 2 F Consider a standard training problem in which you pay an upfront fixed cost of $45,000 to train your worker, and for simplicity suppose that their pay remains the same before and after the training (so that the present discounted value of the costs of training remains constant at $45,000, regardless of the value of the interest rate, r). The training generates a stream of future benefits that has a positive PDV that is greater than $45,000 when r = 0 but which decreases as r grows. If the internal rate of return, p, is approximately 10.42%, which statement is correct? Train the worker as long as ris positive. Train the worker only if r = 10.42%. Ifr is between 5% and 10%, you should train the worker. Train the worker only if r> 10.42%. Train the worker only if r> 10.42%. QUESTION 5 N 2 Consider a standard training problem in which you pay an upfront fixed cost of $45,000 to train your worker, and for simplicity suppose that their pay remains the same before and after the training (so that the present discounted value of the costs of training remains constant at $45,000, regardless of the value of the interest rate, r). The training generates a stream of future benefits that has a positive PDV that is greater than $45,000 when r = 0 but which decreases as r grows. Suppose that the initial training cost drops to some number below $45,000, whereas the present discounted value of benefits from training remains unchanged. If the initial internal rate of return, p, was 10.42% (before the drop in training costs), what is the new internal rate of return (after the drop in training costs)? 6.42% 8.42% 10.42% 12.42% There is not enough information to determine whether the new internal rate of return lies above or below (or is equal to) 10.42%