Question

Andrew quits his job as an accountant where he earns $65,000 per year to go back to school for two years to get an MBA degree. He attends a school that charges $25,000 per year for tuition and related expenses. How much is the total cost (explicit cost plus opportunity cost) of that degree?

A. $153,436
B. $180,000
C. $46,500
D. $158,436

Answer 1

I think it's B. $180,000

Explanation:

If you add tuition for 2 yrs plus lost wages for 2 yrs you get 180,000.