Long-term investment decision, NPV method Jenny Jenks has researched the financial pros and cons of entering into a 1-year MBA program at her state university. The tuition and needed books for a master's program will have an upfront cost of $52,000 . If she enrolls in an MBA program, Jenny will quit her current job, which pays $50,000 per year after taxes (for simplicity, treat any lost earnings as part of the upfront cost). On average, a person with an MBA degree earns an extra $22,000 per year (after taxes) over a business career of 37 years. Jenny believes that her opportunity cost of capital is 6.8 %. Given her estimates, find the net present value (NPV) of entering this MBA program. Are the benefits of further education worth the associated costs?
Long-term investment decision, NPV method Jenny Jenks has researched the financial pros and cons of entering into
a 1-year MBA program at her state university. The tuition and needed books for a master's program will have an upfront
cost of $52,000 . If she enrolls in an MBA program, Jenny will quit her current job, which pays $50,000 per year after taxes
(for simplicity, treat any lost earnings as part of the upfront cost). On average, a person with an MBA degree earns an extra
$22,000 per year (after taxes) over a business career of 37 years. Jenny believes that her
%. Given her estimates, find the
education worth the associated costs?
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