Floyd is now working on a job which pays $8000 per year. He is contemplating to quit his current job and take a 1-year automobile mechanics course, which entails costs of $1000 for books and tuition. Floyd estimates that the course will increase his income to $13,000 in each of the 3 years following completion of the course. At the end of those 3 years, Floyd plans to retire to a commune in Winterville, NC. The current interest rate is 10 percent. A) What is the net present value of Floyd's possible course?
B) Given your answer in (A) should Floyd enroll in the course? why or why not?