Microeconomics 13th Edition by Russell Sobel, David Macpherson, Richard Stroup, James Gwartney

Exercise 14

*Suppose that you are considering whether to enroll in a summer computer-training program that costs $2,500. If you take the program, you will have to give up $1,500 of earnings from your summer job. You figure that the program will increase your earnings by $500 per year for each of the next ten years. Beyond that, it is not expected to affect your earnings. If you take the program, you will have to borrow the funds at an 8 percent rate of interest. From a strictly monetary viewpoint, should you enroll in the program?