Question: Please answer using Google spreadsheet. A prospective MBA student earns $55,000 per year in her current job and expects that amount to increase by 7%

 Please answer using Google spreadsheet. A prospective MBA student earns $55,000

Please answer using Google spreadsheet.

A prospective MBA student earns $55,000 per year in her current job and expects that amount to increase by 7% per year. She is considering leaving her job to attend business school for two years at a cost of $40,000 per year. She has been told that her starting salary after business school is likely to be $70,000 and that amount will increase by 13% per year. Consider a time horizon of 10 years, use a discount rate of 9%, and ignore all considerations not explicitly mentioned here. Assume all cashflows occur at the start of each year (i.e., immediate, one year from now, two years from now, from now). Also assume that the choice can be implemented immediately so that for the MBA alternative the current year is the first year of business school. What are the net present values and equivalent annual worth of your choices? b. What is the most attractive choice and why? nine years a

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