1. It is well known that Bill gates and Mark Zuckerberg did not finish their undergraduate degrees at Harvard University. Hypothetically, suppose you go to Harvard University as an undergraduate student without a scholarship. After you finished your sophomore year, you are now considering whether you should quit Harvard or not to start your own business.

(1) From the perspective of the net present value, how do you reach a decision about whether to stay or quit? What should be included in the possible benefits and costs? (2 points)

(2) Should you incorporate how much tuitions or money you have already spent in the first two years at Harvard into your decision making? Explain your answer. (1 point)

(3) Should you incorporate how much tuitions or money that you will need to pay in the next two years if you choose to stay? Explain your answer. (1 point)