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Question 1: What initial salary would Ben need to receive to make him indifferent between attending Wilton University and staying in his current position?
Point 1: Ben currently works at money management firm of Dewey. His annual salary $53000. His salary increase 3% per year until retirement. Tax rate is 26% and he will work for 38 years until he gets retire.
Point 2: Wilton university is one of the top MBA program in the country. Annual tuition is $58000 per year. Book expense $2000 per year.
Point 3: After graduation Ben will receive $87000 per year bonus $10000 and tax rate is 31%.
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