Assume that you are deciding whether or not to acquire afour-year university degree in economics. Your only considerationat this moment is the degree as an investment for yourself. Thedirect costs per year are the tuition fees of $1,500 and purchasesof books and other course material of $400. The government pays theuniversity an amount equal to four times the amount of tuition feesto cover the cost per student. If you do not go to university, youwill earn $20,000 per year as an acrobat during the first fouryears with a salary increase of 5% from the fifth year on. With auniversity degree, however, you know that you can earn $30,000 peryear as a circus manager for the first four years after graduationwith an annual increase of 6% thereafter. Because of the nature ofthe chosen occupation, your time horizon for the investmentdecision is exactly 10 years after graduating from university :that is, if the investment decision is to be worthwhile it must beso within a 10 year period. The market rate of interest rate is 5%.Would you make the investment in the degree?

Use either the present value or internal rate of return approachfor your calculation

(Please provide detail step by step explanation to get to theright answer in the form of word)