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You have two choices open to you. Option 1: You consider pursuing a university degree that costs $30,000 each year for four years. You pay

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You have two choices open to you. Option 1: You consider pursuing a university degree that costs $30,000 each year for four years. You pay the tuition at the beginning of each year. Upon graduation (four years from now), your salary will be $60,000 and will increase by 7% every year. You get paid once a year, at the end of the year (your first pay is thus at the end of year 5). Option 2: If you do not pursue the degree, then you would immediately start working. Your starting salary would be $40,000, paid at the end of each year, and would increase by 5% every year. (You are paid one year from today for the first time.) A. Draw the timelines of each option. Assume that the discount rate is 10% and you live (and work) forever. Is it worth pursuing such a degree? B. A company tells you that they will sponsor your studies but then you will have to work for them after you graduate (starting 4 years from now) for $50,000 per year, paid at the end of each year, and with a 6% annual increase. Is this a good offer compared to your options above

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