Please use excel and post screenshots of the formulas used to get the answers in whichever cell is selected!!!

Complete the following steps and then answer the two questions below.

1. The total cost of your MBA program is: 31000, set this as your Year 0 (initial year) outflows.
2. Estimate your annual salary for the next 10 years following your MBA program. Generally, salaries at least account for a COLA (cost of living adjustment). You should assume a raise of at least 2% each year that matches target U.S. inflation levels. You should have one figure for each year.
3. Estimate what your annual salary for the next 10 years would be without an MBA. Generally, salaries at least account for a COLA (cost of living adjustment). You should assume a raise of at least 2% each year that matches target U.S. inflation levels. You should have one figure for each year.
4. Calculate the added salary bump from obtaining your MBA (e.g., Year 1 Added Cash Flow = Year 1 MBA Salary - Year 1 Bachelors Salary). You will end up with 10 cash flows, this will represent your Cash flows for Year 1 through year 10.

Solve:

1. What is the NPV of your MBA over the first five years and the full ten years?
2. Was your MBA program worth it (from a financial perspective) over either time horizon? How can you tell?