Consider the following information for a firm deciding on Specific training offer. The cost of the training is $2 million to be paid now. The current wage bill of the workers is $4 million and the rate of interest in the market is 12%. Currently the Value of Marginal Product of the workers is $5 million. With the training the workers are expected to bring in a VMP worth $8 million. However, the more skilled workers are expected to earn more and the future wage bill is $5 million. Calculate and compare the costs and the benefits of this training to the firm to find whether the firm will select to offer or not offer this program. Show your steps. Explain

why the firm may prefer Specific training over General training although it sometimes costs more to offer specific training.