Homework Answers
The net present value of becoming driver is calculated as follows
The net present value of becoming a driver = $ 5098.75
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Suppose the interest rate were instead 33%, the net present value of becoming a driver is calculated as
Net present value when the interest rate is 33% = - $ 866.13
Suppose the interest rate were instead 33%. You would certainly not pursue becoming an Uver driver.
Explanation:- At an interest rate of 33%, the net present value of becoming an Uver driver is negative, hence you would certainly not pursue becoming an Uver driver.
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