Calculating the rate of return for each case is straightforward in Excel using the IRR function. In particular, list Years from 0 to 49. Then, list the salary for college in the next column. Next, list the cost of college or the salary from college for each year. Finally, create a fourth column that is the difference in value (college minus no college). Assuming the difference values are in cells E4 through E53, the Excel command is =IRR (E4:E53). The rate of discount, where each year of college costs $15,000, each year of post college work pays $60,000 and each year of non-college work pays $40,000.

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Answer 1

Question

Chapter 6, Problem 14P

a)

To determine

Calculating the rate of return for each case is straightforward in Excel using the IRR function. In particular, list Years from 0 to 49. Then, list the salary for college in the next column. Next, list the cost of college or the salary from college for each year. Finally, create a fourth column that is the difference in value (college minus no college). Assuming the difference values are in cells E4 through E53, the Excel command is =IRR (E4:E53).

The rate of discount, where each year of college costs $15,000, each year of post college work pays $60,000 and each year of non-college work pays $40,000.

b)

To determine

The rate of discount, where each year of college costs $15,000, each year of post college work pays $80,000 and each year of non-college work pays $35,000.

c)

To determine

The rate of discount, where each year of college costs $35,000, each year of post college work pays $60,000 and each year of non-college work pays $35,000.

d)

To determine

The rate of discount, where each year of college costs $15,000, the first year of post college work pays $60,000 but then increases by 5 percent per year and each year of non-college work pays $35,000 but then increases by 5 percent each year thereafter.

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Answer 2

Question

Chapter 6, Problem 14P

a)

To determine

Calculating the rate of return for each case is straightforward in Excel using the IRR function. In particular, list Years from 0 to 49. Then, list the salary for college in the next column. Next, list the cost of college or the salary from college for each year. Finally, create a fourth column that is the difference in value (college minus no college). Assuming the difference values are in cells E4 through E53, the Excel command is =IRR (E4:E53).

The rate of discount, where each year of college costs $15,000, each year of post college work pays $60,000 and each year of non-college work pays $40,000.

b)

To determine

The rate of discount, where each year of college costs $15,000, each year of post college work pays $80,000 and each year of non-college work pays $35,000.

c)

To determine

The rate of discount, where each year of college costs $35,000, each year of post college work pays $60,000 and each year of non-college work pays $35,000.

d)

To determine

The rate of discount, where each year of college costs $15,000, the first year of post college work pays $60,000 but then increases by 5 percent per year and each year of non-college work pays $35,000 but then increases by 5 percent each year thereafter.

Expert Solution & Answer

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Answer 3

Question

Chapter 6, Problem 14P

a)

To determine

Calculating the rate of return for each case is straightforward in Excel using the IRR function. In particular, list Years from 0 to 49. Then, list the salary for college in the next column. Next, list the cost of college or the salary from college for each year. Finally, create a fourth column that is the difference in value (college minus no college). Assuming the difference values are in cells E4 through E53, the Excel command is =IRR (E4:E53).

The rate of discount, where each year of college costs $15,000, each year of post college work pays $60,000 and each year of non-college work pays $40,000.

b)

To determine

The rate of discount, where each year of college costs $15,000, each year of post college work pays $80,000 and each year of non-college work pays $35,000.

c)

To determine

The rate of discount, where each year of college costs $35,000, each year of post college work pays $60,000 and each year of non-college work pays $35,000.

d)

To determine

The rate of discount, where each year of college costs $15,000, the first year of post college work pays $60,000 but then increases by 5 percent per year and each year of non-college work pays $35,000 but then increases by 5 percent each year thereafter.

Expert Solution & Answer

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Answer 4

Question

Chapter 6, Problem 14P

a)

To determine

Calculating the rate of return for each case is straightforward in Excel using the IRR function. In particular, list Years from 0 to 49. Then, list the salary for college in the next column. Next, list the cost of college or the salary from college for each year. Finally, create a fourth column that is the difference in value (college minus no college). Assuming the difference values are in cells E4 through E53, the Excel command is =IRR (E4:E53).

The rate of discount, where each year of college costs $15,000, each year of post college work pays $60,000 and each year of non-college work pays $40,000.

b)

To determine

The rate of discount, where each year of college costs $15,000, each year of post college work pays $80,000 and each year of non-college work pays $35,000.

c)

To determine

The rate of discount, where each year of college costs $35,000, each year of post college work pays $60,000 and each year of non-college work pays $35,000.

d)

To determine

The rate of discount, where each year of college costs $15,000, the first year of post college work pays $60,000 but then increases by 5 percent per year and each year of non-college work pays $35,000 but then increases by 5 percent each year thereafter.

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Answer 5

Chapter 6, Problem 14P

a)

To determine

Calculating the rate of return for each case is straightforward in Excel using the IRR function. In particular, list Years from 0 to 49. Then, list the salary for college in the next column. Next, list the cost of college or the salary from college for each year. Finally, create a fourth column that is the difference in value (college minus no college). Assuming the difference values are in cells E4 through E53, the Excel command is =IRR (E4:E53).

The rate of discount, where each year of college costs $15,000, each year of post college work pays $60,000 and each year of non-college work pays $40,000.

b)

To determine

The rate of discount, where each year of college costs $15,000, each year of post college work pays $80,000 and each year of non-college work pays $35,000.

c)

To determine

The rate of discount, where each year of college costs $35,000, each year of post college work pays $60,000 and each year of non-college work pays $35,000.

d)

To determine

The rate of discount, where each year of college costs $15,000, the first year of post college work pays $60,000 but then increases by 5 percent per year and each year of non-college work pays $35,000 but then increases by 5 percent each year thereafter.

Answer 6

Chapter 6, Problem 14P

a)

To determine

Calculating the rate of return for each case is straightforward in Excel using the IRR function. In particular, list Years from 0 to 49. Then, list the salary for college in the next column. Next, list the cost of college or the salary from college for each year. Finally, create a fourth column that is the difference in value (college minus no college). Assuming the difference values are in cells E4 through E53, the Excel command is =IRR (E4:E53).

The rate of discount, where each year of college costs $15,000, each year of post college work pays $60,000 and each year of non-college work pays $40,000.

Answer 7

Chapter 6, Problem 14P

a)

To determine

Calculating the rate of return for each case is straightforward in Excel using the IRR function. In particular, list Years from 0 to 49. Then, list the salary for college in the next column. Next, list the cost of college or the salary from college for each year. Finally, create a fourth column that is the difference in value (college minus no college). Assuming the difference values are in cells E4 through E53, the Excel command is =IRR (E4:E53).

The rate of discount, where each year of college costs $15,000, each year of post college work pays $60,000 and each year of non-college work pays $40,000.

Answer 8

b)

To determine

The rate of discount, where each year of college costs $15,000, each year of post college work pays $80,000 and each year of non-college work pays $35,000.

Answer 9

b)

To determine

The rate of discount, where each year of college costs $15,000, each year of post college work pays $80,000 and each year of non-college work pays $35,000.

Answer 10

c)

To determine

The rate of discount, where each year of college costs $35,000, each year of post college work pays $60,000 and each year of non-college work pays $35,000.

Answer 11

c)

To determine

The rate of discount, where each year of college costs $35,000, each year of post college work pays $60,000 and each year of non-college work pays $35,000.

Answer 12

d)

To determine

The rate of discount, where each year of college costs $15,000, the first year of post college work pays $60,000 but then increases by 5 percent per year and each year of non-college work pays $35,000 but then increases by 5 percent each year thereafter.

Answer 13

d)

To determine

The rate of discount, where each year of college costs $15,000, the first year of post college work pays $60,000 but then increases by 5 percent per year and each year of non-college work pays $35,000 but then increases by 5 percent each year thereafter.

Answer 14

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Answer 15

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Answer 16

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Answer 17

Ch. 6 - Discuss how the present value of a future income...Ch. 6 - Prob. 2RQ Ch. 6 - Prob. 3RQ Ch. 6 - Prob. 4RQ Ch. 6 - Prob. 5RQ Ch. 6 - Prob. 6RQ Ch. 6 - Prob. 7RQ Ch. 6 - Prob. 8RQ Ch. 6 - Prob. 9RQ Ch. 6 - Prob. 1P

The rate of discount, where each year of college costs $15,000, each year of post college work pays $80,000 and each year of non-college work pays $35,000.

The rate of discount, where each year of college costs $35,000, each year of post college work pays $60,000 and each year of non-college work pays $35,000.

The rate of discount, where each year of college costs $15,000, the first year of post college work pays $60,000 but then increases by 5 percent per year and each year of non-college work pays $35,000 but then increases by 5 percent each year thereafter.

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Chapter 6 Solutions