Chapter 4, Problem 6MC

Summary Introduction

Case summary:

Person B has completed his undergraduate degree in finance before six years. His aim is to become an investment banker, though he is satisfied with the present job. Person B was searching for the best college to do MBA program, which he thinks that would assist in achieving his aim. He was looking for University W and College M. The details of Person B's current job and his course details are provided.

Characters in the case:

• Person B
• University W
• College M
• Company DL
• College R
• College M
• School B

Adequate information:

• Person B is not allowed to work anywhere until the completion of MBA program.
• The salaries are not paid for the internship course.

Given situation:

Instead of paying cash for the MBA program, Person B have to borrow the money. The present borrowing rate is 5.4%.

To find: How the given situation affects the decision of Person B.