23. You're deciding whether to pursue a Master's degree in Economics. With your Bachelor's degree, you'll earn $105,800 per year, but with a Master's degree, you'd earn $134,000 annually. Your degree depreciates at a rate of 2% per year, and the real interest rate is 2%. You should pursue the Master's degree if the present value of the cost of acquiring it is less than _, which includes the cost of a. $2,645,000; tuition b. $705,000; tuition c. $705,000; tuition and foregone income while completing the degree d. $2,645,000; tuition and foregone income while completing the degree
23. You're deciding whether to pursue a Master's degree in Economics. With your Bachelor's degree, you'll earn $105,800 per year, but with a Master's degree, you'd earn $134,000 annually. Your degree depreciates at a rate of 2% per year, and the real interest rate is 2%. You should pursue the Master's degree if the present value of the cost of acquiring it is less than _, which includes the cost of a. $2,645,000; tuition b. $705,000; tuition c. $705,000; tuition and foregone income while completing the degree d. $2,645,000; tuition and foregone income while completing the degree
Microeconomics A Contemporary Intro
10th Edition
ISBN:9781285635101
Author:MCEACHERN
Publisher:MCEACHERN
Chapter13: Capital, Interest, Entrepreneurship, And Corporate Finance
Section: Chapter Questions
Problem 14PAE
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please answer in text form and in proper format answer with must explanation , calculation for each part and steps clearly
![23. You're deciding whether to pursue a Master's degree in Economics. With your Bachelor's
degree, you'll earn $105,800 per year, but with a Master's degree, you'd earn $134,000 annually.
Your degree depreciates at a rate of 2% per year, and the real interest rate is 2%. You should pursue
the Master's degree if the present value of the cost of acquiring it is less than _, which includes
the cost of
a. $2,645,000; tuition
b. $705,000; tuition
c. $705,000; tuition and foregone income while completing the degree
d. $2,645,000; tuition and foregone income while completing the degree](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F9f6aff1d-ed5c-48e3-bf3e-79ca313596be%2F2f955b52-9571-4ff0-8e55-697b1a469e3b%2Fczkxuq_processed.png&w=3840&q=75)
Transcribed Image Text:23. You're deciding whether to pursue a Master's degree in Economics. With your Bachelor's
degree, you'll earn $105,800 per year, but with a Master's degree, you'd earn $134,000 annually.
Your degree depreciates at a rate of 2% per year, and the real interest rate is 2%. You should pursue
the Master's degree if the present value of the cost of acquiring it is less than _, which includes
the cost of
a. $2,645,000; tuition
b. $705,000; tuition
c. $705,000; tuition and foregone income while completing the degree
d. $2,645,000; tuition and foregone income while completing the degree
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