a) Why should individuals compare costs and benefits before committing to activities, especially those involving time, such as investments? Explain. [4]

b) Consider an individual who currently earns R200,000 as a less-skilled worker. Suppose that by taking courses full time at UNISA for one year, the person can qualify for a more skilled job paying R230,000 that is guaranteed to last for 10 years (after which the person would retire). Assume the cost of tuition and books at UNISA for one year is R20,000 and that the current interest rate is 6%. Is this a good investment? Show you calculations and explain your answer. [6]