John is trying to decide whether to go to college or to start working right out of high school.College as an investment is most likely justified when ________ is greater than the cost of going to college.

Question

Quizplus · Accepted Answer

The cost of going to college includes tuition, fees, books, and other expenses, while the return on investment is the difference between what John would earn as a high school graduate and what he would earn as a college graduate, discounted to their present value. Therefore, the present value of the difference between what John would earn as a college graduate and what he would earn as a high school graduate must be greater than the cost of going to college for college to be a justifiable investment.

John Is Trying to Decide Whether to Go to College