Financial Analysis

docx

School

IPS (Intellectual Prestigious Science Computer College) *

*We aren’t endorsed by this school

Course

101

Subject

Business

Date

Nov 24, 2024

Type

docx

Pages

Uploaded by AgentWorld6733

1 Financial Analysis

2 1) Consider the current scenario, in which her annual salary is $38,000 and she receives a 3% raise each year. 2) . Calculating the total cost of each educational choice is the first step in creating the timetable. The entire cost of the certification program is $5,000. The cost of the MBA program is $75,000. Excel now allows us to build a timeline. In the first column, we'll list the dates of the year. In the second column, we'll list Natasha's age at the beginning of every year. Her salary will be shown in the third column. The certification program's price will be shown in the fourth column. There will be a fifth column with the MBA program's price tag. Using the sixth column, we'll display the inheritance's monetary worth. 3) To compute the current value of the pay disparity, we need to first calculate the future value of the salary discrepancy. The future value of the pay disparity is $10,000 x (1.03)^10 = $13,259. The present value of the pay gap is $13,259 / (1.05)^10 = $8,439. The NPV of doing the certification program is $8,439 - $5,000 = $3,439. 4) . Before we can compute the value of the pay discrepancy in the past vs the value of the salary differential in the present, we need to first determine the value of the salary differential in the future. The present value of the pay gap is calculated as $20,000 multiplied by (1.03) times ten, which equals $26,518. The current value of the pay gap is calculated as follows: $26,518 minus (1.05) times ten, which equals $16,878.

3 The negative net present value of enrolling in an MBA degree is calculated as follows: $16,878 minus $75,000 = -$58,122.  The difference in wage between those with and without an MBA is calculated as $20,000 multiplied by 1.03 times 10 years, which is $26,518 in current value. The cost of the MBA program, expressed as its current value, is $25,000 divided by 1.05 times ten, which is $14,285. The NPV of completing an MBA degree is calculated to be $12,233 after deducting the cost of the program from $26,518.  The difference in wage between those with and without an MBA is calculated as $20,000 multiplied by 1.03 times 10 years, which is $26,518 in current value. The present value of the cost of the MBA program is calculated as follows: $25,000 divided by (1.05) times ten, which is $15,091. The net present value of getting an MBA is calculated to be $11,427 after deducting the cost of tuition from $26,518. 5) . In the event that the two programs are incompatible with one another, I would suggest to Natasha that she participate in the certification program. This is due to the fact that participating in the certification program has a positive net present value, but participating in the MBA program has a negative net present value. Natasha should take both the certification program and the MBA program if they are not incompatible with one another. This is the recommendation I would give her in the event that they are. This is due to the fact that there is a positive net present value associated with participating in both programs. I would recommend to Natasha that she take part in the certification program in the case that the two programs are unable to coexist with one another. This is because enrolling in the certification program has a positive net present value, but enrolling in the MBA program has a negative net present value. The reason for this disparity may be seen in the statistics.

Your preview ends here

Eager to read complete document? Join bartleby learn and gain access to the full version

Access to all documents
Unlimited textbook solutions
24/7 expert homework help

4 Natasha need to sign up for the certification program in addition to the MBA program if the two courses can be taken concurrently without causing any problems. In the case that they are, I would advise her to follow the aforementioned course of action. This is because there is a positive net present value associated with taking part in each of these programs simultaneously.

Related Documents

Bed bath.edited.docx

6582933_1482410031_6721696436182.docx

M.Brooks_Ethics Discussion Paper.docx

COSMINA SAUCIUC RBT2 ( new tabel original ).docx

PM_Discussion_7_6.docx

Mauvy.docx

Fwd Bhavana- Copy 4.edited.docx

SITXWHS004 Ass 4 PART B.docx

IMG_4097.png

BSBOPS404-Templates-Guidelines-Ass-3 (2).docx

Portfolio 4.rtf

Introduction of the compan2.docx

Recommended textbooks for you

Management, Loose-Leaf Version

Management

ISBN:9781305969308

Author:Richard L. Daft

Publisher:South-Western College Pub

Practical Management Science

Operations Management

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:Cengage,

Understanding Management (MindTap Course List)

Management

ISBN:9781305502215

Author:Richard L. Daft, Dorothy Marcic

Publisher:Cengage Learning

Principles of Management

Management

ISBN:9780998625768

Author:OpenStax

Publisher:OpenStax College

Foundations of Business (MindTap Course List)

Marketing

ISBN:9781337386920

Author:William M. Pride, Robert J. Hughes, Jack R. Kapoor

Publisher:Cengage Learning

Foundations of Business - Standalone book (MindTa...

Marketing

ISBN:9781285193946

Author:William M. Pride, Robert J. Hughes, Jack R. Kapoor

Publisher:Cengage Learning

SEE MORE TEXTBOOKS

Recommended textbooks for you

Management, Loose-Leaf Version
Management
ISBN:9781305969308
Author:Richard L. Daft
Publisher:South-Western College Pub
Practical Management Science
Operations Management
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:Cengage,
Understanding Management (MindTap Course List)
Management
ISBN:9781305502215
Author:Richard L. Daft, Dorothy Marcic
Publisher:Cengage Learning
Principles of Management
Management
ISBN:9780998625768
Author:OpenStax
Publisher:OpenStax College
Foundations of Business (MindTap Course List)
Marketing
ISBN:9781337386920
Author:William M. Pride, Robert J. Hughes, Jack R. Kapoor
Publisher:Cengage Learning
Foundations of Business - Standalone book (MindTa...
Marketing
ISBN:9781285193946
Author:William M. Pride, Robert J. Hughes, Jack R. Kapoor
Publisher:Cengage Learning