Project Title: Understanding the Time Value of Money. Introduction$1.$ Briefly explain the importance of the time value of money in financial decision$-$making$\mathrm{.}2.$ Outline the project's goals.II$.$ Basics$1.$ Define key concepts: present value $($PV$),$ future value $($FV$),$ and the time value of money$\mathrm{.}2.$ Explain why these concepts matter in finance.III. Case Study: "Investing in Education: The Time Value of Money"Background:Jessica is considering whether to pursue an MBA degree. She currently works in the finance department of a tech company, earning an annual salary of $$50,000.$ The full$-$time MBA program she is interested in attending costs $$30,000$ per year for tuition and fees, and it's a two$-$year program. She would have to quit her job to attend. Scenario:Jessica believes that completing the MBA will increase her earning potential. She has researched and found that the average salary increase for graduates from this program is approximately $50\%$ above their pre$-$MBA earnings. However, she is concerned about the lost earnings during her two years of study and the upfront cost of the tuition.Jessica has savings that she could use to cover the cost of tuition without needing to take a loan. She seeks to understand if the financial return post$-$MBA justifies the current expenditure and earnings loss.Data Provided:Current annual salary: $$50,000$Expected salary increase post$-$MBA: $50\%$Cost of MBA program $($per year$)$: $$30,000$Duration of MBA program: $2$ yearsNo income during the study periodAverage annual return on the market $($alternative investment$)$: $7\%$Post$-$MBA working years expected: $25$ yearsTask:Analyze Jessica's situation using the Time Value of Money concept to determine if investing in an MBA is financially better than continuing to work and investing her savings in the stock market.$\backslash$Steps for Analysis:Calculate the Present Value of Current Salary:If Jessica continues working without pursuing an MBA, calculate the present value $($PV$)$ of her expected earnings over the next $25$ years, discounting at the market rate of $7\%.$Calculate the Present Value of Future Salary Post$-$MBA:Calculate the PV of her expected increased salary over $23$ years post$-$MBA completion, discounting at the same rate of $7\%.$ Consider the two years of no earnings.Net Benefit Calculation:Compare the PV of earnings without MBA and the PV of earnings with an MBA minus the MBA cost to determine the net financial benefit.Sensitivity Analysis:Conduct a sensitivity analysis considering different rates of salary increases $($e$.$g$.,30\%,50\%,70\%)$ and different market return scenarios $($e$.$g$.,5\%,7\%,9\%)$ to see how robust the decision is under various conditions.Deliverables:Students will submit a report containing: Detailed calculations of each step. A conclusion recommending whether or not Jessica should pursue the MBA based on financial considerations. Graphs and tables illustrating salary projections and net present values. A discussion section analyzing the impact of various factors like economic conditions and personal career goals on the decision.IV$.$ Discounting Cash FlowsIntroduce the concept of discounting.Calculate the present value of a future cash flow:V$.$ ComparisonsCompare the present value and future value to emphasize the impact of time on money's value.Discuss the implications for investment decisions.VI$.$ Real$-$world ApplicationProvide real$-$world examples of how businesses use the time value of money in capital budgeting or loan decisions.VII. Conclusion$1.$ Summarize the key takeaways about the time value of money$\mathrm{.}2.$ Emphasize the practical importance of considering time in financial analysis.