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Question 7 10 pts Your current salary is $55,000 (ignore taxes). Assume for simplicity that you receive this entire amount at the end of the
Question 7 10 pts Your current salary is $55,000 (ignore taxes). Assume for simplicity that you receive this entire amount at the end of the year (your paycheck arrives at t=1). You anticipate raises of 2% every year until you retire (so at t=2 you get $56,100, for example). Your last year of work will be t=30. You are considering starting a 2-year MBA program today. If you do, You must pay $34,000 in tuition and fees today and another $34,000 in 1 year. You will earn no money in the next two years, t=1 and t=2. Your new salary, received for the first time at t=3, will be $75,000. This salary will grow at 3% per year until you retire. Your last year of work will still be t=30 (so you work 28 years). Your discount rate is 4%. Leaving aside your passion for your new job and the lifelong friendships you will form, what is the NPV of doing the MBA
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