Because a decision on whether to Continue sending a child to school is an investment choice on the..

Because a decision on whether to Continue sending a child to school is an investment choice on the part of the family. we can apply the coat-bene?t analy?is to understand the ?lmilY’S decision’muking. BMUW i3 3 hynothcticul Emily’s expected cash flow-tr (net bene?t) related to sending their daughter to a secondary school. The ?lmily lives in a poor rural village in Africa. (For simplicity, the daughter has a very short. life!) Cash Flow Discount Factor Present Value (dogged __ At. 8% (dollars) (1) Fill all the empty cells. (Hint: discount factor is: IKE-?t where i is the discount rate set at 8%) ‘ (2) Given the calculated Net Present Value of this investment, should the family send this girl to the secondary school? Explain your answer. (3) In the cash flow of years 0, 1, and 2, both direct costs and indirect costs (opportunity cost) of education are included. What Speci?c cost items could be included in these two categories of costs?