1. ) Sarah finished her undergraduate degree in business several years ago and her current job pays $40,000 (after taxes). She could earn $55,000 per year (after taxes) if she had an MBA. Tuition is $10,000 per year. Sarahs discount rate is 5% per year. She just turned 48 and plans to retire when she turns 54 (meaning she will benefit from the degree from age 50 to 54 or for 5 years total). Based on this information, should she go to school to get her MBA? Show all your work. Hints: Calculate the PV of the costs of her education and the PV of her benefits or the extra money she makes from the education (like we did in in-class #8) from the MBA. Her first year of costs is current, no discounting needed. Her second year of costs is one year from now and needs to be discounted one year. Her benefits start two years from now, when she is 50 and has finished the program. You will start discounting her benefits at 2 years, then 3 and so on for 5 years total until she retires.