Can you help with question 4, 5 and 6?

Thank you.

The MBA Decision and less well known than the Sentinel School. It offers an acRaj Danielson graduated from university six years ago with a celerated one-year program, with a tuition cost of $80,000 to finance undergraduate degree. Although he is satisfied with be paid upon matriculation. Books and other supplies for the his current job, his goal is to become an investment banker. program are expected to cost $3,500. Raj thinks that he will He feels that an MBA degree would allow him to achieve this receive an offer of $81,000 per year upon graduation, with a goal. After examining schools, he has narrowed his choice to $10,000 signing bonus. The salary at this job will increase at either Assiniboine University or the University of Passy. Both 3.5 percent per year. His average tax rate at this level of inschools encourage internships, but to get class credit for the come will be 29 percent. internship, no salary can be accepted. Other than internships, Both schools offer a health insurance plan that will cost neither school allows its students to work while enrolled in its $300 per year, payable at the beginning of the year. Raj also MBA program. Raj currently works at the money management firm of year at both schools. The appropriate discount rate is Prash and Sid. His annual salary at the firm is 555,000 and his 6.5 percent. salary is expected to increase at 3 percent per year until retirement. He is currently 28 years old and expects to work for 38 Questions more years. His current job includes a fully paid health insur- 1. How does Raj's age affect his decision to get an MBA? ance plan, and his current average tax rate is 26 percent. Raj 2. What other, perhaps nonquantifiable, factors affect Raj's has a savings account with enough money to cover the entire decision to get an MBA? cost of his MBA program. 3. Assuming all salaries are paid at the end of each year, in the country. The MBA degree What is the best option for Raj from a strictly financial The Sentinel School of Business at Assiniboine University is standpoint? requires two years of full-time enrollment at the university. The annual tuition is $63,000, payable at the beginning of 4. Raj believes that the appropriate analysis is to calculate each school year. Books and other supplies are estimated to the future value of each option. How would you evaluate cost \$2,500 per year. Raj expects that after graduation from this statement? Assiniboine, he will receive a job offer for about $98,000 per 5. What initial salary would Raj need to receive to make him year, with a 515,000 signing bonus. The salary at this job will indifferent between attending Assiniboine University and increase at 4 percent per year. Because of the higher salary, his staying in his current position? average income tax rate will increase to 31 percent. 6. Suppose, instead of being able to pay cash for his MBA, The Pond School of Business at the University of Passy beRaj must borrow the money. The current borrowing rate gan its MBA program 16 years ago. The Pond School is smaller is 5.4 percent. How would this affect his decision? The MBA Decision and less well known than the Sentinel School. It offers an acRaj Danielson graduated from university six years ago with a celerated one-year program, with a tuition cost of $80,000 to finance undergraduate degree. Although he is satisfied with be paid upon matriculation. Books and other supplies for the his current job, his goal is to become an investment banker. program are expected to cost $3,500. Raj thinks that he will He feels that an MBA degree would allow him to achieve this receive an offer of $81,000 per year upon graduation, with a goal. After examining schools, he has narrowed his choice to $10,000 signing bonus. The salary at this job will increase at either Assiniboine University or the University of Passy. Both 3.5 percent per year. His average tax rate at this level of inschools encourage internships, but to get class credit for the come will be 29 percent. internship, no salary can be accepted. Other than internships, Both schools offer a health insurance plan that will cost neither school allows its students to work while enrolled in its $300 per year, payable at the beginning of the year. Raj also MBA program. Raj currently works at the money management firm of year at both schools. The appropriate discount rate is Prash and Sid. His annual salary at the firm is 555,000 and his 6.5 percent. salary is expected to increase at 3 percent per year until retirement. He is currently 28 years old and expects to work for 38 Questions more years. His current job includes a fully paid health insur- 1. How does Raj's age affect his decision to get an MBA? ance plan, and his current average tax rate is 26 percent. Raj 2. What other, perhaps nonquantifiable, factors affect Raj's has a savings account with enough money to cover the entire decision to get an MBA? cost of his MBA program. 3. Assuming all salaries are paid at the end of each year, in the country. The MBA degree What is the best option for Raj from a strictly financial The Sentinel School of Business at Assiniboine University is standpoint? requires two years of full-time enrollment at the university. The annual tuition is $63,000, payable at the beginning of 4. Raj believes that the appropriate analysis is to calculate each school year. Books and other supplies are estimated to the future value of each option. How would you evaluate cost \$2,500 per year. Raj expects that after graduation from this statement? Assiniboine, he will receive a job offer for about $98,000 per 5. What initial salary would Raj need to receive to make him year, with a 515,000 signing bonus. The salary at this job will indifferent between attending Assiniboine University and increase at 4 percent per year. Because of the higher salary, his staying in his current position? average income tax rate will increase to 31 percent. 6. Suppose, instead of being able to pay cash for his MBA, The Pond School of Business at the University of Passy beRaj must borrow the money. The current borrowing rate gan its MBA program 16 years ago. The Pond School is smaller is 5.4 percent. How would this affect his decision