In the equation for the net present value of migration,,the term "C" refers to: $$V _ { p } = \sum _ { n = 1 } ^ { N } \frac { E _ { 2 } - E _ { 1 } } { ( 1 + i ) ^ { n } } - \sum _ { n = 1 } ^ { N } \frac { C } { ( 1 + i ) ^ { n } } - Z$$
A)the net psychic costs of moving
B)the direct and indirect monetary costs of moving
C)earnings from the new job
D)the discount rate

Question

Quizplus · Accepted Answer

In the given equation, "C" refers to the direct and indirect monetary costs of moving. This includes expenses like transportation, moving costs, and any other expenses incurred during the migration process. The net present value of migration is calculated by subtracting the present value of these costs from the present value of expected earnings in the new location over a given period of time.

In the Equation for the Net Present Value of Migration,,the