[a] Ms. Liza, US Citizen, is a young professional manager living in Dallas. She is thinking of studying the 2 years MBA program at the University of Chicago. According to the Chicago MBA website, the estimated annual academic year costs are as follows:

Tuition $ 73,440; Student Services Fee $ 1,248; Health Insurance $ 4,566; Administrative Service Fee $ 2,600 (first year only); Lifetime Credentials Fee $ 75 (a one-time fee charged in fall of the first year); Books $ 684; Room and Board $ 22,185; Personal $ 2,286; Transportation $ 1,944; Computer Allowance $ 1,300 (first year only). She realized that she needs to borrow money to cover her MBA expenses. According to the Financial Aid website, she could use the financial aids: [1] Federal Unsubsidized Loans. Lending limit: $20,500 per academic year; Current interest rate: 6.08% p.a.; Current origination fee: 1.059% (paid upfront) [2] Federal Graduate PLUS Loans. Lending limit: Awarded up to a student's cost of attendance, less of Graduate PLUS Loans. Lending limit: Awarded up to a student's cost of attendance, less other forms of aid awarded; Current interest rate: 7.08% p.a.; Current origination fee: 4.236% (paid upfront) She is planning to take 15-years term loans. Calculate the monthly installment she needs to repay the loans! (6 points)

[b] Explain what factors can change her monthly installment! (2 points)

[c] There are several problems with the Internal Rate of Return (IRR). Then, explain a situation in which IRR might be a more appropriate measure to use than NPV! (2 points)