If you learn a foreign language, you can improve yourcompensation at work. Given you are not good at learning languages,you estimate today you would need to spend $5,000 to learn alanguage. You then believe you can earn $3,000 more per year forthe next 3 years starting a year from today before you move onto anew job. However, you will also pay back $2,000 to the companyexactly 3 years from today since some of your clients will leavewith you. Your discount rate is 6% APR.
1. what is the NPV of learning a new language?
2. What is the IRR?
3. What is the MIRR if you use the discount rate as thereinvestment rate?
