Calculate the irr and npv

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1) Sigma Tech: You can stay at Sigma and pay $57,500 a year for 4 years. Upon graduation, your starting salary will be $75,000 per year and will increase by 2.5% per year until you retire. You will work for 30 years after graduation and then retire. Assume no inflation.

2) Online4U: You are also thinking of going to a new online university, Online4U, which only costs $15,000 per year. However, you will also have to obtain an additional certificate at the end of the fourth year, which costs $5,000. Then you have to renew your professional certificate every 5 years at the same $5,000 cost. Upon graduation (after 4 years), your starting salary will be $60,000 and will grow by 2% per year. Assume you will also work for 30 years after graduation.

Your discount rate is 7%. PLEASE CALCULATE IRR AND NPV AND SHOW WORK IN EXCEL

Reference no: EM131907124

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