Leave your friend out of your decision. Do you want this job? If the answer is a yes or maybe, then apply for it. If it's answer is no, then don't. While it is very nice of you to care about your friend's feelings, they should not prevent you from applying for the job. I actually question the professionalism of someone who would use friendship to discourage someone from pursuing a career advancement. That's simply not fair to you.
Let the best/right person win. But that's for the employer to decide; not your friend.
That said, I think you need to think hard about whether you're truly interested in the job in the first place. My own relative lack of vacation time and long commute add greatly to my stress levels at work. In my mind, those are pretty big cons, but then again, I don't know much about your financial situation and how needed that $20k is.
Live with intention. Walk to the edge. Listen hard. Practice wellness. Play with abandon. Laugh. Choose with no regret. Continue to learn. Appreciate your friends. Do what you love. Live as if this is all there is.
--Mary Anne Radmacher