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Assume that you are currently working in a job full time and are considering going back to school to get a graduate degree so that
Assume that you are currently working in a job full time and are considering going back to school to get a graduate degree so that you can advance your career. However, you have been in the workforce for a number of years, and anticipate working only 15 more years after you get your degree before you retire. Your cost of capital or interest earning potential is 7.85% annual, compounded monthly, since you are fairly aggressive in managing your portfolio. You currently earn $60,000 per year, paid monthly. Answer the following questions. A) Assume you want to "get it over with," and are going to drop out of work and then come back in refreshed, recharged and retooled. You're used to hard work and think you can finish your degree in 2 years, including some downtime for a vacation before you get on with your life. Furthermore, your employer values your contribution so much, it is willing to fund your sabbatical and cover your educational costs, but will require you to take a leave without pay. How much more would you have to earn on an annual basis (ignore raises, fringes and other soft items) in the 13 years to justify
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