PLEASE DO ALL FORMULAS IN EXCEL SHEET AND SCREENSHOT PLEASE

Part $3$: Time Value of Money

Your analysis of the equipment project has created a reputation within the office as someone who knows how to evaluate financial projects. A colleague of yours, Pam Beasley, is asking you for financial planning advice regarding whether it makes more sense to continue her career as a receptionist or return to school to get an MBA. She just inherited $$75,000$ from a long$-$lost relative, which she can invest in a diversified equity fund earning $8\%$ per year on average. She is currently earning $$40,000$ per year in her current position, and she expects that to grow at $3\%$ per year until she retires. If she goes back to get an MBA, it will cost her $$25,000$ per year for three years, but when she graduates, she will be able to move into a better$-$paying position which will pay $$30,000$ per year more than her current position and which will also be expected to increase by $3\%$ per year until she retires. Rather than invest the $$75,000,$ she is going to pay for her MBA using the inheritance. Pam is currently $30$ years old; she will be $33$ years old when she graduates from the MBA program and expects to retire at age $65.$ She would be attending the MBA program at night, so she doesn$$t expect to lose any income while she is in school.

Create a timeline in Excel for Pam to analyze her current situation with the alternative of going to get her MBA using the following assumptions:

Salaries for the year are paid only once, at the end of the year.

The salary increase for graduating from the MBA program would be effective immediately in the year she graduates.

You determine an appropriate WACC to use in your calculations is $7\%.$

Calculate the Net Present Value if Pam decides to stay in her current job.

Calculate the Net Present Value if Pam decides to undertake the MBA program.

Based on your answers to questions $3$ and $4,$ what advice would you give her assuming the two choices are mutually exclusive, that is$,$ she can only accept one?