Present Value of Educational Options Because of the uncertainty of valuation of future value (FV) (Ross et al., 2013), decision-making processes must begin with an understanding of the present value (PV) of each position (see Figure 1). The PV of growing annuity is calculated for the current job utilizing an annual salary of $65,000, an annual increase in salary of 3%, a tax rate of 26%, and a discount rate of 6.5%. The PV for Wilton University or Mount Perry College is adjusted for perspective…
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