Jane has graduated from the college with a finance undergraduate degree. Currently, she is working at the Credit Union as a loan officer and her goal is to become a chief financial officer (CFO) in the American banking sector. She expects a master's degree in finance to bring her dream into reality. After looking through the number of institutions, she has decided either to go to Harvard University or British Columbia University. Both universities do not allow her to work while she is enrolled in the MS programs.

For the time being, she earns $6,000,000 per year, and her salary is expected to increase by 4% per year until retirement. She is currently 23 years old and expects to work for 40 more years. Her current job includes a fully paid health insurance plan, and her current average tax rate is 20%. Jane has accumulated enough money to meet her study expenses in abroad.

Harvard University is ranked number one in the world and the admission competition is abnormally high. The two-year program is face-to-face and the annual tuition is equivalent of $16,000,000, payable at the beginning of each school year. Books and other supplies are estimated to cost $1,000,000 per year. Jane expects that after graduation from Harvard University, she will receive a job offer for about $30,000,000 per year, with a $6,000,000 signing bonus. The salary at this job will increase by 5% per year. Because of the higher salary, his average income tax rate will increase to 25%.

British Columbia is smaller and less well-known than Harvard University. It offers an one-year intensive program, with a tuition cost of $20,000,000 paid still at the beginning of the year. Books and other supplies for the program are expected to cost $1,200,000. She expects to receive a job offer of $25,000,000 per year upon graduation, with a $7,000,000 signing bonus. The salary at this job will increase by 4.5% per year. The average tax rate at this level of income will be 23%.

Both universities offer a health insurance plan that will cost $2,000,000 per year, payable at the beginning of the year. In Addition, both schools offer graduate housing, so her room and board expenses will decrease by $3,000,000 per year at either school. The appropriate discount rate is 10%. All salaries are paid at the end of each year.

1. What nonquantifiable factors may affect her decision to get an MS in finance?

2. Jane has 3 options: stay at the same job or take one of the colleges and move to any of high-salary jobs. What is the best option for Jane from a strictly financial standpoint? Show the way you get the answer.