Why does the NPV of a college education tend to be positive

Why does the NPV of a college education tend to be positive but relatively small? O A. O B. Most of these studies are based on nominal interest rates, so the NPV is smaller O c. College students tend to be young and poor, so their opportunity cost of capital is O D. College graduates typically have limited on-the-job skills, so their initial returns There are few barriers to entry for a college education. than we would achieve under real interest rates. high. from the education investment tend to be small.

Solution

Most of these studies are based on Nominal interest rates, so the NOV is smaller than we would achieve under real interest rate

Answer-B