Suppose a training program costs $2,000 and results in a benefit of $1,000 in one year, and $1,200 in two years. The interest rate is 8%. This is for my labor economics class and I just need to know how to calculate this problem
Can someone help? Thank you
Present payment $2,000
1 year later $1,000
2nd $1,200
I/R 8%
I think it is asking to compare year one from year two