37. Your life lasts two more periods(t 0 and t-1). You can either earn $20,000 in t = 0 and $22,000 in t = 1, or go to school full time during t = 0 (out-of-pocket costs = $2,000) and earn $45,000 during t-1. Assume that both income and costs are realized at the beginning of each period. (a) Use the net present value (NPV) formula from lecture to calculate the NPV of the school alternative for the interest (discount) rates 0.0, 0.03, 0.05, and 0.1. Which discount rates justify following the school alternative? Why? (b) Evidence suggests that the real rate of return on education exceeds that on investments in physical assets. How could capital constraints that limit lending to finance education lead to this result? Why might such constraints exist