archived_user
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- Jun 18, 2026
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According to the curriculum, the value of human capital today (HCo) = {p(St)*Wt-1*(1+g)} / (1+Rf+y)t
but in the example, to get the pv of human capital they used the growth rate (g) in the denominator, they added (Rf+y+g) altogether to get the discount rate, which contradicts what’s stated by the above formula….anybody can guess why is that ?!!!!!!!
but in the example, to get the pv of human capital they used the growth rate (g) in the denominator, they added (Rf+y+g) altogether to get the discount rate, which contradicts what’s stated by the above formula….anybody can guess why is that ?!!!!!!!
