You are 25 today and you are considering studying for an MBA with a concentration in finance. You have just received your annual salary of $75,000 and you expect it to grow by 3 percent per year. MBAs with finance concentration typically earn a base salary of $110,000 upon graduation with salaries growing by 4 percent per year.

The MBA program you are considering is a full time, two-year program that costs $30,000 per year payable at the end of each study year. You want to retire on your 65th birthday. The relevant discount rate is 8%. Is it worthwhile for you quit your job in order to do an MBA (ignore income taxes). What is the internal rate of return of the MBA?