Question
ASSIGMENT REQUIRED: A DETAIL EXPLANATION. JUAN decided to move from mexico to vancouver (one of the most expensive cities) to get an 2 year MBA
ASSIGMENT REQUIRED: A DETAIL EXPLANATION.
JUAN decided to move from mexico to vancouver (one of the most expensive cities) to get an 2 year MBA degree.
what is the value of an MBA abroad?:
JUAN current annual salary: $57,692 CAD
after graduate ESTIMATE starting annual salary: $90,000 CAD
Total Tuition, books and fees cost $34,000 for 2 YEARS.
total ROOM & BOARD: $84,000 CAD for 2 years
However, you must give up two years of current salary during graduate school plus pay tuition, room, etc.
USEFUL TIME PERIOD OF MBA: 5 YEARS
INFLATION RATE: 7.6%
What are the risks associated with getting an MBA?
Cash flow expected for the useful life in increments per year?
Discount the future cash flow of the present value?
Assume your discount rate too using an assumed rate like inflation?
What is the minimum expected starting salary after graduation that makes getting MBA degree worth it?
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Using Financial Accounting Information The Alternative to Debits and Credits
Authors: Gary A. Porter, Curtis L. Norton
7th Edition
978-0-538-4527, 0-538-45274-9, 978-1133161646
