Calculate the present values of your lifetime earnings over two different career paths: one where you accept an “average job” and one where you pursue your “dream job”. The parameters that need to be customized to fit each of your career paths, include:
• Starting age (enter UA) (t=0).
• Projected retirement age (R).
• An interest / discount rate (r).
• All direct schooling costs (H).
• Occupation and industry.
• Annual earnings (w) (for your completed level of schooling).
• Changes in earnings over time (due to on-the-job training).
• Work promotion / relocation.
With your calculations, briefly explain the source of each parameter value, any assumptions being made, and why your parameters are the same or different between your career paths.
