You are a project manager reporting to the general manager at your organisation. You are aware that the general manager will retire in 4 years, and it is the company's policy that whoever has to take up that position should have at least a Master of Business administration degree. You can either apply for an unpaid study leave and get a R270 000 interest free loan from the company for upkeep during the study of the degree on full-time basis for one and half years, or you can study on a part-time basis for 3 years whilst going to work and pay a personal Tutor R12 000 a month for three years. The cost of study is R200 000.00 regardless of whether it's part time or full time and the company is prepared to pay for your studies in either case. On a full-time basis, the probability of passing is 1 whereas it is 0.5 for part-time study due to pressure from both work and study. Your salary is R30 000 per month. a. Develop the problem in this situation? Please state it in an explicit and precise manner. b. Systematically apply the seven principles of engineering economy of the prescribed book to the problem you have defined in Part (a).
You are a project manager reporting to the general manager at your organisation. You are aware that
the general manager will retire in 4 years, and it is the company's policy that whoever has to take up
that position should have at least a Master of Business administration degree. You can either apply
for an unpaid study leave and get a R270 000 interest free loan from the company for upkeep during
the study of the degree on full-time basis for one and half years, or you can study on a part-time basis
for 3 years whilst going to work and pay a personal Tutor R12 000 a month for three years. The cost
of study is R200 000.00 regardless of whether it's part time or full time and the company is prepared
to pay for your studies in either case. On a full-time basis, the probability of passing is 1 whereas it is
0.5 for part-time study due to pressure from both work and study. Your salary is R30 000 per month.
a. Develop the problem in this situation? Please state it in an explicit and precise manner.
b. Systematically apply the seven principles of engineering economy of the prescribed book to the
problem you have defined in Part (a).
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