assume that you are about to graduate from your university 269375

Assume that you are about to graduate from your university and are deciding whether to apply for graduate school or enter the job market.

To help make the decision, you have gathered the following data:

Costs incurred for the bachelor’s degree ……………..$163,000

Out of pocket costs for a master’s degree …………… $92,000

Estimated starting salary with B.A. ………………….. $48,400

Estimated starting salary with MA …………………… $66,800

Estimated time to complete master’s degree 2 years

Estimated time from the present to retirement 40 years

a. Which of these factors is relevant to your decision?

b. What is the opportunity cost associated with earning the master’s degree?

c. What is the out of pocket cost to obtain the master’s degree?

d. What other factors should you consider before making a decision?