2.George will graduate with a bachelor's degree in social work in May 2022. He is considering the completion of a Master's degree in social work so that he can hold a clinical position as a mental health social worker. The master's degree requires two years of academic training, so George would not graduate with his Master's degree until May 2024. He knows that most of his friends who have graduated recently with bachelor social work degrees are starting jobs that pay an average of $42,000 the first year, $43,000 the next year, and $44,000 the following year. Tuition and fees for the Master's in social work cost $18,000 per year. Once George has his two year Master's degree in social work he expects to earn about $60,000 per year as a mental health social worker. What are the total costs of receiving the first year of training in the Master's program?

a)$18,000c) $42,000

b)$36,000d) $60,000

3.(continued from question above) George will be finished with his undergraduate degree in May 2022 and would complete the first year of the Master's program from August 2022 to May 2023 and the second year of the Master's program from August 2023 to May 2024. If he decides to complete the Master's degree, what is the present value of the total costs she would incur over these two years? Assume a 4% interest rate. (Assume during the first year of school the time period is n = 1).

a)$33,284c) $111,871

b)$80,141d) $114,090

4.(continued from questions above) If George completes the Master's in social work program in May 2024, he will begin his career as a mental health social worker in three years. Today, what is the present value of the future benefits of being a mental health social worker (based on benefits in the first year he is employed)? Assume a 4% interest rate.

a)$14,224c) $53,334

b)$16,000d) $60,000

5.(continued from questions above) What is the rate of return to George's two-year Master's degree?

a)47.7%c) 14.0%

b)22.5%d) 12.5%

6.(continued from questions above) Should George enroll in the Master's program? George __________ enroll because _________.

a)should; the rate of return on the Master's program is greater than zero.

b)should not; there are too many mental health care workers in the U.S. already so he would have difficulty making a meaningful contribution to the field.

c)should; the rate of return on the Master's program is greater than the market rate of 4%.

d)should not; the rate of return is too low to justify enrolling in the program.