Hello, need help with this Data Case. See the questions below and the rubric attached.

Assumetoday is March 16, 2016. Natasha Kingery is 30 years old and has aBachelor of Science degree in computer science. She is currentlyemployed as a Tier 2 field service representative for a telephonycorporation located in Seattle, Washington, and earns $38,000 a yearthat she anticipates will grow at 3% per year. Natasha hopes to retireat age 65 and has just begun to think about the future.

Natashahas $75,000 that she recently inherited from her aunt. She investedthis money in 30-year Treasury Bonds. She is considering whether sheshould further her education and would use her inheritance to pay forit.

Shehas investigated a couple of options and is asking for your help as afinancial planning intern to determine the financial consequencesassociated with each option. Natasha has already been accepted to bothof these programs, and could start either one soon.

Onealternative that Natasha is considering is attaining a certification innetwork design. This certification would automatically promote her to aTier 3 field service representative in her company. The base salary fora Tier 3 representative is $10,000 more than what she currently earnsand she anticipates that this salary differential will grow at a rate of3% a year as long as she keeps working. The certification programrequires the completion of 20 Web-based courses and a score of 80% orbetter on an exam at the end of the course work. She has learned thatthe average amount of time necessary to finish the program is one year.The total cost of the program is $5000, due when she enrolls in theprogram. Because she will do all the work for the certification on herown time, Natasha does not expect to lose any income during thecertification.

Anotheroption is going back to school for an MBA degree. With an MBA degree,Natasha expects to be promoted to a managerial position in her currentfirm. The managerial position pays $20,000 a year more than her currentposition. She expects that this salary differential will also grow at arate of 3% per year for as long as she keeps working. The eveningprogram, which will take three years to complete, costs $25,000 peryear, due at the beginning of each of her three years in school. Becauseshe will attend classes in the evening, Natasha doesn’t expect to loseany income while she is earning her MBA if she chooses to undertake theMBA.

1. Determinethe interest rate she is currently earning on her inheritance by goingto the U.S. Treasury Department Web site (treasury.gov) and selecting“Data” on the main menu. Then select “Daily Treasury Yiled Curve Rates”under the Interest Rate heading and enter the appropriate year, 2016,and then search down the list for March 16 to obtain the closing yieldor interest rate that she is earning. Use this interest rate as thediscount rate for the remainder of this problem.
2. Createa timeline in Excel for her current situation, as well as thecertification program and MBA degree options, using the followingassumptions:
   • Salaries for the year are paid only once, at the end of the year.
   • Thesalary increase becomes effective immediately upon graduating from theMBA program or being certified. That is, because the increases becomeeffective immediately but salaries are paid at the end of the year, thefirst salary increase will be paid exactly one year after graduation orcertification.
3. Calculatethe present value of the salary differential for completing thecertification program. Subtract the cost of the program to get the NPVof undertaking the certification program.
4. Calculatethe present value of the salary differential for completing the MBAdegree. Calculate the present value of the cost of the MBA program.Based on your calculations, determine the NPV of undertaking the MBA.
5. Basedon your answers to Questions 3 and 4, what advice would you give toNatasha? What if the two programs are mutually exclusive? That is, ifNatasha undertakes one of the programs there is no further benefit toundertaking the other program. Would your advice be different?