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Please show all work Suppose you have just finished the final year of your undergraduate degree at university and are faced with the choice of

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Please show all work

Suppose you have just finished the final year of your undergraduate degree at university and are faced with the choice of either getting a job when you graduate or studying for a Masters degree, and you wish to understand the financial implications of each alternative. If you take the get a job route you expect to start off with a salary of $50,000 per annum, paid as a lump sum at the end of each year. You expect that your salary will grow at 5% per annum until you retire in 40 years. If you study for a Masters degree, you will be paying $25,000 per annum in tuition fees for each of the three years you are studying. Tuition fees are payable as a lump sum at the beginning of each academic year. Upon graduation, you expect to start off with a salary of $90,000 per annum, paid as a lump sum at the end of each year. You expect that your salary will grow at 7% per annum until you retire in 37 years. Assuming a discount rate of 10% per annum. What is the present value of the future earnings you will realise by going directly to work upon completion of your undergraduate degree? i. $626,240.61 ii. $838,216.50 iii. $844,451.98 iv. None of the above What is the present value of your tuition fees for the Masters degree? i. $55,723.56 ii. $62,171.30 iii. $86,503.12 iv. None of the above What is the present value today of the future earnings you will realise if you study for a Masters degree? i. $1,121,452.22 ii. $1,381,533.21 iii. $1,597,637.51 iv. None of the above

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