Ann is anticipating that she will be able to secure a job offer for about $85,000 per year after graduating from program A, with a $7,000 signing bonus. The salary at this job will probably increase at 5 percent per year. Since the pay is much higher than her current income, Ann expects her average tax rate will increase to 30 percent.

For program B, Ann thinks that she will most likely be able to get an offer of $75,000 per year upon graduation, with a $6,000 signing bonus. The salary at this job will increase at 4.75 percent per year and, due to the increased level of income, her average tax rate will be 28 percent.

Ann was discussing her analysis with a friend, who mentioned she should calculate the future value of each of the scenarios since what matters is the amount of money when she retires. How would you evaluate this statement?