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A Student Entering College Wants to Assess the Value of Investing

Question 58

Multiple Choice

A student entering college wants to assess the value of investing in human capital. To determine whether the investment will be profitable, she should compare the


A) value of her total expected future earnings with the total of her direct and indirect costs of college.
B) present discounted value of future earnings with the total of her direct and indirect costs of her education.
C) present discounted value of her additional future earnings as the result of the college education with the present discounted value of only her direct costs of college.
D) present discounted value of her additional future earnings as the result of the college education with the present discounted value of her direct and indirect costs of college.

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