You are 30 years old today and are considering studying for an MBA. You have just received your annual salary of $50,000 and expect it to grow by 3% per year. MBAs typically earn $80,000 upon graduation, with salaries growing by 4% per year. PLEASE ANSWER IN EXCEL FORMAT WITH FORMULA INCLUDED

The MBA program you are considering is a full- time, 2- year program that costs $30,000 per year, payable at the end of each study year. (that is, the MBA cost occurs when you are 31 and 32 years old.) You want to retire on your 65th birthday. The relevant discount rate is 8%.

1. Is it worthwhile for you to quit your job in order to do an MBA (ignore income taxes)? (10 points)

2. Apparently, the decision to go for an MBA or not depends on your starting salary today. Find the starting salary today that makes you feel indifferent between with an MBA and without an MBA. (5 points)