Sarah lives in Lusaka and currently works as a domestic worker for a family that pays her K30,000 per year. She has recently been given an offer of employment as a cleaner at a large mine in Solwezi where salary would be K35,000 per year for the next 3 years. Living costs in Lusaka and Solwezi are similar, but relocation would cost her K5,000. After 3 years, Sarah plans to quit work altogether and start college. Sarah reckons that she can only move if her additional savings would be at least K2,500 in today's terms. Her personal discount rate is 7%. Kindly advise Sarah whether moving to the new job in Solwezi would be worth it or not. Clearly present your workings.

Homework (Ch 01) Store Local Shoe Store Different Neighborhood in Town Rural Outlet Travel Time Each Way (Minutes) 15 30 60 Price of a Boots (Dollars per boots) 115 98 75 Juanita earns an hourly wage of $20 at her job. In order to purchase her boots she will have to take time off work, so each hour away from her job costs her $20 in lost income. Assume that Juanita's travel time is the same each way (to and from the store) and that it will take her 30 minutes once she reaches a store to complete her shopping. Assume throughout the question that Juanita incurs no additional costs other than the boots, such as gas. Store Local Shoe Store Different Neighborhood in Town Rural Outlet Complete the following table by computing the opportunity cost of Juanita's time and the total cost of shopping at each location." Opportunity Cost of Time (Dollars) Price of a Boots (Dollars per boots) 115 Total Cost (Dollars) 98 75 Assume that Juanita considers both her opportunity costs and the price of…

Different Neighborhood in Town Rural Outlet 30 60 Store Local Shoe Store Different Neighborhood in Town 112 Juanita earns an hourly wage of $42 at her job. In order to purchase her sandals she will have to take time off work, so each hour away from her job costs her $42 in lost income. Assume that Juanita's travel time is the same each way (to and from the store) and that it will take her 30 minutes once she reaches a store to complete her shopping. Assume throughout the question that Juanita incurs no additional costs other than the sandals, such as gas. Rural Outlet 98 86 Complete the following table by computing the opportunity cost of Juanita's time and the total cost of shopping at each location. Opportunity Cost of Time (Dollars) Price of a Sandals (Dollars per sandals) 112 98 86 Total Cost (Dollars) Assume that Juanita considers both her opportunity costs and the price of sandals when making her shopping decision. Juanita will minimize her cost of buying the sandals if she shops…

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