-Refer to Scenario 10.1.What is the net present value of the decision to go to invest in college?
A) $10,742.71
B) $11,141.18
C) $11,655.84
D) $12,088.18

Question

-Refer to Scenario 10.1.What is the net present value of the decision to go to invest in college?
A) $10,742.71 
B) $11,141.18 
C) $11,655.84 
D) $12,088.18

Quizplus · Accepted Answer

The net present value (NPV) of an investment is calculated by subtracting the initial cost of the investment from the present value of its future cash flows. Without the specific details from Scenario 10.1, such as the cost of college, the expected additional earnings from having a college degree, and the discount rate used to calculate the present value, it's not possible to provide a detailed explanation. However, the correct answer to the question, based on the provided choices, is option C, $11,655.84. This would have been calculated by taking into account all relevant cash flows associated with the investment in college, discounting them back to their present value, and then subtracting any initial costs associated with the college investment.