Your current after-tax annual income is €50,000, which should increase by 4% per year until you retire. You believe that if you interrupt your professional career for 2 years to do an MBA, you could earn €65,000 after tax per year, with an annual increase of 5% until you retire. What is your present value if you retire in 40 years’ time, and the discount rate is 4%? If the total cost of the MBA is €50,000 payable immediately, what is the net present value of this investment? Is it worth doing an MBA?