household saving and investment decision?

10 You are now so year old and consldering fal ime study for an MBA 10. You are now 30 years old and considering full time study for an MBA degree. Tuition and other direct cost will be $20,000 per year for two years In addition, you have to give up a job with a salary of $35,000 per year. Assume tuition is paid and salary received at the end of this year. Assume a real interest rate of 3% per year and ignore taxes. With an MBA degree, you can find a job that pays a constant real amount of $42,000 and last until a retirement of 65. a) In present value terms, what is the cost from obtaining an MBA degree? (Hint: During your full time study, you have to pay for tuition in addition to giving up your current job) b) at is the present value from an increased in salary from an MBA degree? c) What the net present value from an MBA degree? Based on this cost- benefit analysis, should you pursue an MBA degree