The amount $ 85,760.51 already deducted with 26% taxed, the salary before tax deduction is $ 108,508.2. So, the initial salary would Ben need to receive to make him indifferent between attending Wilton University and Staying in his current position is $108,508.2
6. Suppose, instead of being able to pay cash for his MBA, Ben must borrow the money. The current borrowing rate is 5.4%. How would this affect his decision?
There are two options: