Jenny Jenks has researched the financial pros and cons of entering into a 1-year MBA program at her state university. The tuition and needed books for a master's program will have an upfront cost of

$103,000. On average, a person with an MBA degree earns an extra $20,000 per year (after taxes) over a business career of 39 years. Jenny feels that her opportunity cost of capital is 5.3%. Given herestimates, find the net present value (NPV) of entering this MBA program. Are the benefits of further education worth the associated costs? The following time line depicts the cash flows associated with this problem:

Tuition (CF0): $103,000

Extra earnings Extra earnings

Year 1 $ 20,000

Year 2 $20,000

.

.

Year 39 $20,000

A) The net present value (NPV) of entering this MBA program is