Alice just turned 30 years old and is currently working at the bank. Alice is currently making $90,000 per year and her salary will increase by 2 percent per annum. She is considering whether or not to do a Master in Finance at Deakin University.

She is currently considering the following options:

Option 1: She can enter the Master of Finance full time and gives up her income for 2 years. The tuition fees for the Master program is $30,000 per year. After the program, she expects that she is able to land a job as a senior manager earning $120,000 that grows at 2% per annum

Option 2: She can do the Master of Finance program part time and work part time. In this case, the duration of the course will be 4 years and the tuition fees is $15,000 per year. She can only work part time; therefore, her salary is reduced by half. If Alice chooses to work part time, her salary will increase by 2 percent per year after the reduction. After the program, she expects that she is able to land a job as a senior manager earning $120,000 that grows at 2% per annum

Option 3: She can choose not to study at the Master of Finance program and simply continue her job.

Assumptions: 1. Alice expects to work until she is 65 regardless of whether she chooses to continue further studies or not. 2. Cash flows occur at the end of the year. 3. The cost of capital is assumed to be 8 percent per annum.

1. Prepare three Excel spreadsheets or table of cash flows and calculate the total present value of each of the options (ignore other cost/income she might have during the years)