Mike graduated from college with a finance degree six years ago and is currently content with their job, but they have a goal of becoming an investment banker. To achieve this goal, they believe that obtaining an MBA degree is necessary. After researching various schools, they have narrowed their options down to two schools. Both schools encourage internships, but they do not offer any salary for class credit. Also, the MBA program at both schools prohibits students from working while studying. Mike is currently employed at a money management firm. Their yearly salary is $53,000 and is expected to increase at a rate of 3 percent every year until their retirement. This person is currently 28 years old and will work for another 38 years. They receive a fully paid health insurance plan from their employer and their average tax rate is 22 percent. This person has enough savings to cover the cost of their MBA program. Business School ABC is recognized for its highly-regarded MBA program, which is considered one of the best in the country. The MBA program requires full-time enrollment for two years, and the tuition fee is $58,000 per academic year, which is payable in advance. Additionally, students are expected to spend approximately $2,000, per year on books and supplies. Upon completing an MBA program, graduates can expect to receive job offers with a starting salary of approximately $87,000 and a signing bonus of $10,000. The salary is expected to increase by four percent annually. However, higher salaries result in an increased average income tax rate of 31%. Another Business School called Business School XYZ introduced its MBA program 16 years ago. The school is smaller and less well-known compared to other institutions. The program is an accelerated one-year course, with tuition costs of $75,000 to be paid at the start of the program. Additionally, students should budget $4,200 for books and other supplies. Assuming a graduate successfully completes the program, a job offer is expected with a starting salary of $78,000 per year and a signing bonus of $8,000. The starting salary will increase by 3.5 percent annually. The average tax rate at this income level will be 29%. Mike is considering two different schools, both of which provide a health insurance plan that can be purchased for $3,000 each year. Additionally, both schools offer graduate housing, which will result in a yearly reduction of $4,000 in Mike's room and board expenses, regardless of whether he chooses to attend one school or the other. The appropriate rate of discount to be applied is 5.5 percent. Required: 1- In what way does Mike's age influence his decision to enroll in an MBA program? 2- Besides measurable factors, what other intangible elements can impact Mike's choice to pursue an MBA? 3- If salaries are disbursed annually, what is the most financially viable option for Mike? 4- Mike thinks that computing the future value of each possibility is an appropriate analysis. How would you assess this statement? 5- What would be the minimum salary that Mike needs to be offered to be equally inclined towards attending Business School ABC or continuing his current job? 6- In case Mike has to take a loan to finance his MBA, and the current borrowing rate is 5.4 percent, how will this affect his decision-making process?