Cost-Benefit analysis question.

[alnorth]

you guys reply fast. I made several corrections to fix some minor errors.

It all boils down to condition 6. If it means you'll be working for 49,000 per year for 30 years, then don't join the peace corps. If it means you merely lose a grand total of $3,000 over your entire working life, then join the peace corps.

[alnorth]

condition 6 is screwing this up. I'm now beginning to think it just meant take off 3000 total instead of 1 grand per year (or 30k total). The reason is the word "lifetime". If the question writer wanted to say your salary is reduced to 49,000, then if that word is removed, the intent is much clearer. "lifetime" does not need to be there if that was the intent.

If the question meant to say you'll lose 3,000 over the course of your life, then the value of joining the peace corps is $1.164MM

edit: yep, after reading it again I change my mind, I'm going with the alternate interpretation, and I'd make it very clear what I was doing and why. So yes, join the peace corps.

[-King-]

Originally Posted by alnorth

condition 6 is screwing this up. I'm now beginning to think it just meant take off 3000 total instead of 1 grand per year (or 30k total). The reason is the word "lifetime". If the question writer wanted to say your salary is reduced to 49,000, then if that word is removed, the intent is much clearer. "lifetime" does not need to be there if that was the intent.

If the question meant to say you'll lose 3,000 over the course of your life, then the value of joining the peace corps is $1.164MM

edit: yep, after reading it again I change my mind, I'm going with the alternate interpretation, and I'd make it very clear what I was doing and why. So yes, join the peace corps.

I think I'm going to go with that since thats the only way question 2 would make sense.

It wouldn't make sense to go to the peace corp in question 2 if the benefit was lower than the cost.