Current time: June $2024.$ Ian received an undergraduate degree in finance five years ago in mid$-2019$ and has been employed all this time at a mid$-$size wealth management company. His initial salary was $$70,000$ per year. He did not receive an increase after a year of work in $2020$ due to pandemic, however, his salary increased $10\%$ in $2021,8\%$ in $2022,$ and another $7\%$ in $2023.$ It is now summer of $2024,$ and Ian decided that his five$-$year stint at this employer has prepared him well for an MBA degree. He applied to several schools and was accepted by one of the top$-10$ programs in the county. Ian notified his manager about his decision yesterday, but today the manager made him the following offer: Ian will be assigned to lead a very important project with immediate salary increase of $20\%.$ The manager assured him that for the following three years his annual raises will be at least $8\mathrm{.}0\%$ and then will grow at $3\mathrm{.}0\%$ per year. Ian is planning to make his decision $($quit and go to school or stay and lead the project$)$ based on the total present value of future earnings in the next $25$ years $($ignore taxes$).$ He plans to stop working in exactly $25$ years regardless of his decision today and become a gentleman farmer. $1.$ Build a spreadsheet with Ian$$s cash flows for the next $25$ years and calculate present value of future earnings for two options: $(1)$ stay and lead the project and $(2)$ enroll into MBA program; assume the following: Ian estimates that the two$-$year MBA program will cost $$120,000$ per year in tuition and other expenses $($assume the payments are made at the end of the year$)$; his starting salary after MBA is expected to be $$150,000$ and will grow $3\mathrm{.}0\%$ per year. Ian thinks that the appropriate discount rate is equal to $10-$yr nominal Treasury rate in June $2024+4\mathrm{.}00\%$ risk premium $($use Treasury rate from Section I $$ do not forget to divide by $100$ to turn that number into a fraction$).$ What option should Ian pick? $2.$ What must be the immediate $($today$$s$)$ adjustment to his current salary to make Ian indifferent between the two options? $($Hint: use solver function in Excel$)3.$ Discuss your findings. What other considerations should Ian take into account in making his decision? Can they be incorporated into the NPV framework?