Josie Has an Undergraduate Degree in Economics and Has Been

question 81

Multiple Choice

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 MS degree in economics,the present value of her lifetime earnings is $275,000.The annual cost of an MS degree in economics is $15,000 and the interest rate is 8%.
The discounted (present value) cost of Josie's graduate degree in economics is _______.

• A)$30,000
• B)more than $30,000
• C)more than $15,000 but less than $30,000
• D)$15,000