(Relevant costs) Assume that you are about to graduate from your university. You are trying to decide whether to apply for graduate school or enter the job market. To help make the decision, you have gathered the following data:

a. Which of these factors are relevant to your decision?

b. What is the opportunity cost associated with earning the master’s degree?

c. What is the out-of-pocket cost to obtain the master’s degree?

d. What other factors should you consider before making a decision?LO.1 

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Costs incurred for the bachelor's degree Out-of-pocket costs for the master's degree Estimated starting salary with B.A. Estimated starting salary with M.A. Estimated time to complete master's degree Estimated time from the present to retirement $103,000 $72,000 $40,400 $48,800 2 years 40 years