Assume the marginal rate of return to schooling is given by, Financial Management

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Assume the marginal rate of return to schooling is given by

Assume the Marginal Rate of Return to Schooling is given by the following equation: MRR=40-2S.

If Jack has a discount rate of 20% and Jill has a discount rate of 16%, what are the optimal years of school each choses?

Graph your answer to (A) Labeling all axis, curves and optimal schooling points.

If the wage schooling locus is given by w=70,000+6,000*S½. What wages are earned by Jack and Jill?

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Financial Management: Assume the marginal rate of return to schooling is given by

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