Question: Consider a young man with 18 years old who is going to decide to make a high graduation. Assume that if he doesn’t make the graduation, he starts working at the 18’s with a annual revenue of $ 10.000, from the age of 18 to 65. Alternatively, he can make the graduation, with a $1.500 cost per year during 5 years, working from the 23 to the 65, with a annual revenue of $ 15.000.

For a discount rate in discrete time of 3% per year, which alternative shall be chosen by the young man. Discuss the result.