Jeff Winger is deciding whether to attend school or not. Assume that we have a four period model. If he attends school,he will spend 45,000 in the first period to pay for the schooling costs. In the second period, he starts his job and earns $75,000. In the third period he gets a raise to $105,000. In the fourth period, he gets an additional raise to $135,000. If Jeff decides to not attend school, he earns $50,000 the first period, $55,000 the second period, $60,000 the third period, and $65,000 the fourth period.

a) Calculate the present value of going to school and not going to school assuming his discount rate is 10%.

b) Should Jeff attend school? Justify your answer

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