Computing the economic cost

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Suppose that a student who has completed her undergraduate degree and is planniing pursuing an MBA as a full time student. The cost of the second year MBA program she is planning is $45,000 for tuition. If she doesn't become a full-time MBA student, her next best alternative is to accept a job she's just been offered, which pays $30,000 per year. Moreover, she can expect a 5% salary increase each year with this employer. Apply the concept of opportunity cost to calculate the economic cost (as opposed to the accounting cost, which would not factor in opportunity cost) of pursuing the MBA over the course of the next two years

Reference no: EM1375804

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