Person B has completed his graduation six years ago with an undergraduate degree in finance. His aim was to be an investment banker although he is satisfied with his present job. He was searching for the best college to do MBA program, which he thinks would assist him in achieving his aim. He was looking for the University W and College M. The details of his current job and his course details are provided. Characters in the case: Person B University W College M Adequate information: If the person B remains at the current job then present value of his after tax salary is $938,149.63 The present value of the direct cost if Person B joins the University W is $114,924.17 The present value of the after tax bonus that is paid in two years from the salary if he joins the University W is $6,199.32. To calculate: The initial salary that Person B has to get to make him to be different in attending the University W and staying in his current position.

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Chapter 6, Problem 5M

Summary Introduction

Case summary:

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

Characters in the case:

Person B

University W

College M

Adequate information:

If the person B remains at the current job then present value of his after tax salary is $938,149.63

The present value of the direct cost if Person B joins the University W is $114,924.17

The present value of the after tax bonus that is paid in two years from the salary if he joins the University W is $6,199.32.

To calculate: The initial salary that Person B has to get to make him to be different in attending the University W and staying in his current position.

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