Jane Walker graduated from college five years ago with an undergraduate degree in marketing. Despite a satisfying current job, Jane's goal is to become a marketing manager. Jane believes an MBA degree will provide the skills needed for this career advancement. After careful evaluation, Jane has narrowed the choice to either Harbor University or Summit Business School. Though internships are encouraged by both schools, they are unpaid if taken for class credit. Neither school allows students to work while enrolled in their MBA program.

Currently working at the marketing firm of Fisher & Smith, Jane earns $$64,000$ per year, with annual increments of $2\mathrm{.}5\%$ expected until retirement. Jane is now $27$ years old and expects to work for $38$ more years. Jane enjoys a fully paid health insurance plan and an average tax rate of $24\%.$ The savings account holds sufficient funds to cover the entire MBA program.

Harbor University's School of Business offers a two$-$year MBA program with an annual tuition of $$68,000.$ Books and other supplies cost approximately $$3,200$ per year. After graduation, Jane expects to receive a job offer of about $$112,000$ annually, along with a $$16,000$ signing bonus. This salary will increase by $3\mathrm{.}8\%$ per year, with an expected average income tax rate of $28\%.$

Summit Business School is smaller and less recognized but offers a one$-$year MBA program for $$84,000$ in tuition. Books and supplies cost around $$4,800.$ Jane expects to receive a starting salary of $$92,000$ with a $$14,000$ signing bonus after graduation. The salary will increase by $3\mathrm{.}2\%$ annually, with an expected tax rate of $27\%.$

Both schools provide health insurance plans costing $$3,000$ annually. Room and board expenses will be $$2,200$ more per year than Jane's current expenses at both schools. The discount rate is $4\mathrm{.}5\%.$

Instructions

Provide responses to each of the following questions using the EXCEL TVM Functions.

What is the best financial option for Jane? Assess based on the information given.

Is it accurate for Jane to calculate the future value of each option for a decision?

What starting salary would make Jane indifferent between attending Harbor University and staying in the current role?

How would borrowing the MBA funds at a $4\mathrm{.}2\%$ interest rate influence Jane's decision?

Provide clear explanations, calculations $($where applicable$),$ and logical arguments for your conclusions. Your analysis should follow a structured, logical approach to illustrate your thought process effectively.