Instructions: Answer Question 12 (the bolded part) and thoroughly explain. Read through all the notes below before answering.

12.) As a soon to be graduate, you may soon be faced with the decision of getting a master's degree. Using some personal assumptions and current financial knowledge, form a preliminary view on the decision(s). Anticipate some questions and answer them from personal perspective about "As a soon to be graduate, you may soon be faced with the decision of getting a master's degree."

• Yes, the question is purposefully vague. The analysis and answer(s) will be personalized based on chosen set of inputs. As such, your answer will be based upon the structuring of the decision(s), the appropriateness and completeness of your chosen inputs, and overall thoroughness.
• There will NOT be one universal right answer.The decision will be unique for everyone and may change based on assumptions and circumstances.

Key concepts to include in answer in addition to several others:

-Incremental cash flows- Identify correct cash flows, how they would be used, and manipulate it

-Takeaways from this process

-In your field, what do your premiums get?

-What cash flows are relevant in decision making? Consider including a timeline.

Examples of thought processes for this answer to use in addition to others:

• Cost of private vs. public universities
• Is there enough of a return to pay the differential?
• Value of friendships and school's religious affiliation is hard to quantify
• At some point, since market is so good for employees right now, employers are starting to offer to pay for tuition again
• Tax perspective: free tuition is still taxable income (which is a tax shield effect because you're getting some free, but having to pay for part of it)
• Costs and/or benefits of being a full-time masters student that is out of the workforce while getting masters degree
• However, if you work while being a masters student, your employer could pay for part of your tuition
• Note: You want to consider tuition a cash flow (even if your parents are fully paying for your tuition) because it is still a cost
• A scholarship is a different story: If you attend a top prestigious school, you'll likely pay full tuition OR go to a lower quality less prestigious school and receive a generous scholarship