Lydia has just received her Associates degree from a community college. She is trying to decide if she should start working or if she should transfer to the University of Iowa to complete two more years of school and earn her Bachelors Degree. She has a job offer for $26,000. Tuition at the University of Iowa is $8,000 per year. While in school, she expects to hold a part-time job and earn $3000 during the school year and an additional $3200 over the summer (for a total of $6200 per year while in school). She is a median type of person, so she assumes she will get a job and earn the median salary for women with a bachelors degree ($40,000). For simplicity assume no raises. The interest rate is 4%. a) She is considering a 6 year horizon (either she works for 6 years, or she gets her BA and then works for an additional 4 years). (Note: if you start with t=0, you will be considering up to t=5.) Should she transfer to UI and get a BA degree? What is the present value of her lifetime stream of net benefit from the BA? Show all your work. (I strongly encourage you to do this in excel, in which case you may print out and attach your spreadsheet.) b) If Lydia is 20 and expects to retire at age 65, how much more will she earn over her lifetime with the bachelors degree?