A Masters of Accountancy degree at Jalapeno University would cost $15,000 for an additional fifth year of education beyond the bachelor's degree. Assume that all tuition is paid at the beginning of the year. A student considering this investment must evaluate the present value of cash flows from possessing a graduate degree versus holding only the undergraduate degree. Assume that the average student with an undergraduate degree is expected to eam an annual salary of $50.000 per year (assumed to be paid at the end of the year) for 10 years. Assume that the average student with a graduate Masters of Accountancy degree is expected to eam an annual salary of $65,000 per year (assumed to be paid at the end of the year) for nine years after graduation. Assume a minimum rate of return of 10% Instructions 1. Determine the net present valle of cash flows from an undergraduate degree. Use the present value tables provided in this chapter. Round to nearest dollar 2. Determine the net present value of cash flows from a Masters of Accountancy degree, assuming no salary is earned during the graduate year of schooling Round to nearest dollar. 3. What is the net advantage or disadvantage of pursuing a graduate degree under these assumptions? What are some other factors that may play a role and is not part of this simplified scenario? To aid your calculation you may consider using this AC2M120 Jensate as a calculation guide the includes time value table) Photo is below anatkamathabhar) 13/podn 12/04 1/4 www 12/10 13/05 12/TH 12/w 550,000 $50,000 550,000 $50,000 $5000 $30000 $5000 $5000 $3 period at 13/ 12/1 12/02 w/m 12/ 13/ 1/4 umr 1/ 11/919 13/w 14,000