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How do I go about this question? It’s for a 3 week class I’m taking
Please, provide a detailed cost benefit analysis of taking this accelerated principles of microeconomics class during your winter holidays. Try to quantify some of the economic terms that you will use in your own analysis, to the extent possible.
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Answer #1

The following model can be used to answer the question:-

Discounting rate should be the inflation rate in your economy say 2% or so.

Formula for PV= CF1/(1+0.02)1 + CF2/ (1+0.02)2 + CF3/ (1+0.02)3

Months Cost Explicit Cost Fees of the course Transportation Cost School supplies Books purchased 0 0 0 0 0 Implicit costs stipend that could have been earned from winter Internship 0 TOTAL COST Present Value of cost Possible salary from a Benefit Ifuture iob basis this course 0 0 Value addition(Quantified) TOTAL BENEFIT Present Value of Benefit 0 0

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