Kay Evans just completed her B.S. degree and is considering pursuing doctoral (Ph.D.) studies in economics. If Kay takes a job immediately a job after graduation, she can earn $35,000 during the first year, with an anticipated raise of $4,000 per year over the next five years. If Kay pursues the doctorate, five more years of school are required. Kay has been offered an assistantship paying $9,500 per year plus tuition. Books and computer purchases needed for her study will cost an average of $1,500 per year. These costs will not be incurred if Kay takes a job immediately. Upon graduation, Kay expects an annual income level of $55,000 during her first year of teaching. The growth rate in Kay’s teaching salary is expected to equal the growth rate of the income she would make if she did not pursue the Ph.D. How should Kay evaluate her decision to pursue a Ph.D.? What other information do you need? What factors other than salary should be considered?