Lisa wanted to be able to pay for four years of education at a private university.\ \ She began with a few financial assumptions.\ \ At the time, the cost of a college education was $40,000 per year, including books, supplies, and daily living expenses; Lisa expected this cost to rise by 4% each year.\ Each years college expenses would have to be paid in one installment at the beginning of that year. Thus, the first college payment would be due in six years, and the last amount would be due in nine years.\ She would make ten annual deposits to a savings account (beginning now and ending nine years from now) and could afford to increase her annual contribution by 5% each year.\ All college expenses will be paid automatically from this account, and she wants the savings to cover the college expenses exactly (no funds in this account after the last payment).\ She expected to earn a 7% yearly return on her investments in a balanced portfolio of stocks and bonds. \ 1. How much should the initial investment be so that the savings in the account cover the college expenses exactly?\ \ 2. With this initial investment,\ \ Determine the NPV of (i) her annual investments and (ii) the college expenses over time, using the 7% discount rate.\ Graph the values of Mrs. Savers investments, returns, tuition expenses, and account balances over time on one chart in Excel.