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Net Present Value for Warren Buffet

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Warren Buffett, in an interview by students at Columbia University, offered students $100,000 cash in return for 10% of their lifetime earnings. No conditions were attached. Evaluate this offer making any assumptions you need. State the assumptions. The score for this question will based mostly on your solution process, rather than the final answer.

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The expert examines the net present value for Warren Buffet.

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Let us assume that a student at the Columbia University will get at job at $60000 per annum.
The salary will grow at the rate of 4% per annum.
He will ...

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