1. Assume that you are considering going to a trade school for one year to learn how to be a
deep-sea diver. The cost of this schooling will be $35,000; given the rigors of this program, you
will not be able to work during this year. Assume that you will then be a deep sea diver for only
10 years after that; the reason you can do it for only 10 years is because after that period, your
lungs will be so damaged by the pressures of the sea that you won't be able to dive anymore.
Your annual income from being a diver will be $50,000. If you don't go to school, you will
work at Wal-Mart for the 11 years, earning $20,000 per year. Assume no pay raises. Assume
the interest rate is 5%. Should you go to school to be a deep-sea diver? Explain.