Josie has an undergraduate degree in economics and has been working as a utility rate analyst at the local electricity utility.If she continues on her present career path,the present value of her lifetime earnings is $250,000.If she takes two years off and gets an MA degree in economics,the present value of her lifetime earnings is $275,000.The annual cost of an MA degree in economics is $15,000 and the interest rate is 8%.Assume that school fees are paid at the beginning of the year.
-Refer to the information above.Based on the discounted (present value)benefit and cost of acquiring a MA degree in economics,Josie should

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The cost of the MA degree is $30,000 ($15,000 per year for two years), and the present value of her lifetime earnings increases by only $25,000 ($275,000 - $250,000). The increase in earnings does not cover the cost of the degree, making it financially unwise.

Josie Has an Undergraduate Degree in Economics and Has Been