Question 3 (15 points) You are thinking about going to graduate school. It costs $3,000 a year for tuition and books. Room and board is $5,000 a year. If you complete four years of graduate school, your yearly earnings will be $60,000 as a professor and your salary will increase at a rate of 10% per annum. If you chose not to go to grad school, your yearly earnings will be $45,000 as a manager and your salary will increase at a rate of 5% per annum. The annual interest rate is 5%, and your working life is 20 years (note: you work only 16 years if you go to graduate school). a) (5 points) What should be included in your calculation of the opportunity costs of grad school and why? b) (5 points) Calculate the present value of your earnings in the two proposed occupations. Which occupation should you choose to maximize wealth? c) (5 points) What other considerations, besides yearly earnings, might enter into your occupational choice