achel will graduate with a bachelor's degree in marketing in May 2022.She is considering earning an MBA degree and specializing in finance because the MBA will bring more job opportunities as a financial manager.The master's degree requires two years of training, so Rachel would not graduate with her Master's degree until May 2024.She knows that most of her friends who have graduated recently with business administration degrees are starting jobs that pay an average of $51,000 the first year, $52,000 the second year, and $53,000 the third year.Tuition and fees for the Master's program cost $18,000 per year.Once Rachel has her two year MBA degree she expects to earn about $74,000 per year as a financial manager.

What are thetotalcosts of receivingtwo yearsof training for the Master's degree (taking the present value/discounting is not necessary)?

Group of answer choices

$36,000

$51,000

$103,000

$139,000

(continued from the question above) Rachel will graduate with a bachelor's degree in marketing in May 2022.She is considering earning an MBA degree and specializing in finance because the MBA will bring more job opportunities as a financial manager.The master's degree requires two years of training, so Rachel would not graduate with her Master's degree until May 2024.She knows that most of her friends who have graduated recently with business administration degrees are starting jobs that pay an average of $51,000 the first year, $52,000 the second year, and $53,000 the third year.Tuition and fees for the Master's program cost $18,000 per year.Once Rachel has her two year MBA degree she expects to earn about $74,000 per year as a financial manager.

Rachel will be finished with her undergraduate degree in May 2022 and would complete the first year of the Master's program August 2022 - May 2023 and the second year of the Master's program August 2023 - May 2024.Consider the first year of the degree program to be one year in the future (n = 1) and the second year of the program to be two years in the future.If she decides to complete the MBA degree, what is thepresent value of the total costsshe would incur over these two years? Assume a 6% interest rate.

Group of answer choices

$33,962

$65,094

$123,709

$127,394

(continued from questions above)Rachel will graduate with a bachelor's degree in marketing in May 2022.She is considering earning an MBA degree and specializing in finance because the MBA will bring more job opportunities as a financial manager.The master's degree requires two years of training, so Rachel would not graduate with her Master's degree until May 2024.She knows that most of her friends who have graduated recently with business administration degrees are starting jobs that pay an average of $51,000 the first year, $52,000 the second year, and $53,000 the third year.Tuition and fees for the Master's program cost $18,000 per year.Once Rachel has her two year MBA degree she expects to earn about $74,000 per year as a financial manager.

If Rachel completes the Master's program in May 2024, she will begin her career as a market research analyst three years in the future.Today, what is the present value of the future benefits of being a market research analyst with a MBA (for one year)? Assume a 6% interest rate.

Group of answer choices

$17,632

$21,000

$62,132

$74,000

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

Group of answer choices

47.7%

22.5%

17.0%

13.8%