I have already solved the first 3 out of 4 questions, but I need help solving the 4th question. I have provided the answers to help answer the 4th question. Please help!

TVM. For this and the next 3 questions: Your brother just graduated from high school and is seeking your advice as to whether he should find a job immediately or go to college for 4 years and then find a job afterward. He estimates that if he gets a job immediately, he will earn $15,000 per year for the next 40 years. If he goes to college first, he estimates that he can earn $30,000 for each of the 36 years after he graduates. Whether or not he goes to college, he plans to retire 40 years from today. For simplicity, assume zero growth in income. He estimates that the 4 years of college will cost him $8,000 per year. Assume a discount rate of 14% (also, assume that he goes to college first, he could also borrow money at 14%). Assume that all cash flows occur at the end of each period.

1) What is the present value of his cash flows if he gets a job immediately? PV = $106,575.61

2)What is the present value of his cash flows if he goes to college first, foregoing therefore the opportunity to earn an income in the next 4 years? PV = $58,724.48

3) Suppose your brothers chances of getting any job in the next 4 years are at best doubtful. In this case, you should assume that he will be unemployed during this period. What then is the PV of his cash flows if he goes to college first? PV = $102,430.16

4) Now assume income growth rate of 5%. Again, first year income if no college is $15,000. This amount will then grow at 5% per year. Similarly, first year income after graduating from college is $30,000, which will then grow at 5% per year. College cost of $8,000 is the same per year. Given this revised information, what is the present value of the cash flows if this individual chooses to go to college first, thus foregoing the opportunity to earn any income in the next 4 years? a. $125,739.86 b. $58,724.48 c. $82,034.17 d. $102,430.16 e. $115,802.33 f. None of the above Hint: On spreadsheet, grow both sets of incomes by 5% per year. Then use NPV function to find PV.