Ben Bates graduated from college six years ago with a finance undergraduate degree. Although he is satisfied with his current job, his goal is to become an investment bunker. He feels that MBA degree would allow him so achieve this goal. After estimating schools be has narrowed his choice to either Wilton University or Mouse Perry College. Although internship are encouraged by both schools, to get class credit for the internship, no salary can be paid. Other than internship neither school will allow its students to work while enrolled in its MBA program. Ben currently works at the money management firm of Dewey and Lois. His annual salary at the firm is $55, 0000 per year, and his salary is expected to increase at 3 percent per year until retirement. He is currently 28 years old and expect to work for 38 more years. His current job includes a fully paid health insurance plan, and his current average tax rate is 26 percent. Ben has a savings account with enough money to cover the entire cost of his MBA program. The Ritter college of Business at Wilton university is one of the top MBA program in the country. The MBA degree requires two years of full time enrolled at the university. The annual is $63, 000, payable at the beginning of each school year. Books and other supplies are estimated to cost $2, 500 per year. Ben expects that after graduation from Wilton, he will receive a job offer for about$98, 000 per year, with a $15, 000 signing bottom. The salary at this job will increase at 4 percent per year. Because of the higher salary, his average income tax rate will increase to 31percent. The Bradley school of Business at Mount Puree College began its MBA program 16 years ago. The Bradley school is smaller and less "well known that the Ritter College. Bradley offers an accelerated one-year program, with a tuition cost of $80, 000 to be paid upon matriculation. Books and other supplier for the program are expected to cost $3, 500. Ben thinks that he will receive an offer of $81, 000 per year upon graduation, with a $10, 000 signing become. The salary at this job will increase at 3.5 percent per year. His average tax rate at this level of income will be 29 percent. Both schools offer a health insurance plan that will cost $3, 000 per year, payable at the beginning of the year. Ben also estimates that and experience will cost $20, 000 per year at both schools. The appropriate discount rate is 6.5 percent. How does Ben's age affect his decision to get an MBA? What other, perhaps, factory affect Ben's decision to get an MBA? Assuming all salaries are paid at the end of the each year. What is the best option for Ben from a strictly financial standpoint? Ben believes that the appropriate analysis is to calculate the future value of each option. How would you evaluate this statement? What initial salary would Ben need to receive to make him indifferent between attending Wilton University and staying in his current positions? Suppose, instead of being able to cash for his MBA. Ben must borrow the money. The current borrowing rate is 5.4 percent. How would this affect his decision? Ben Bates graduated from college six years ago with a finance undergraduate degree. Although he is satisfied with his current job, his goal is to become an investment bunker. He feels that MBA degree would allow him so achieve this goal. After estimating schools be has narrowed his choice to either Wilton University or Mouse Perry College. Although internship are encouraged by both schools, to get class credit for the internship, no salary can be paid. Other than internship neither school will allow its students to work while enrolled in its MBA program. Ben currently works at the money management firm of Dewey and Lois. His annual salary at the firm is $55, 0000 per year, and his salary is expected to increase at 3 percent per year until retirement. He is currently 28 years old and expect to work for 38 more years. His current job includes a fully paid health insurance plan, and his current average tax rate is 26 percent. Ben has a savings account with enough money to cover the entire cost of his MBA program. The Ritter college of Business at Wilton university is one of the top MBA program in the country. The MBA degree requires two years of full time enrolled at the university. The annual is $63, 000, payable at the beginning of each school year. Books and other supplies are estimated to cost $2, 500 per year. Ben expects that after graduation from Wilton, he will receive a job offer for about$98, 000 per year, with a $15, 000 signing bottom. The salary at this job will increase at 4 percent per year. Because of the higher salary, his average income tax rate will increase to 31percent. The Bradley school of Business at Mount Puree College began its MBA program 16 years ago. The Bradley school is smaller and less "well known that the Ritter College. Bradley offers an accelerated one-year program, with a tuition cost of $80, 000 to be paid upon matriculation. Books and other supplier for the program are expected to cost $3, 500. Ben thinks that he will receive an offer of $81, 000 per year upon graduation, with a $10, 000 signing become. The salary at this job will increase at 3.5 percent per year. His average tax rate at this level of income will be 29 percent. Both schools offer a health insurance plan that will cost $3, 000 per year, payable at the beginning of the year. Ben also estimates that and experience will cost $20, 000 per year at both schools. The appropriate discount rate is 6.5 percent. How does Ben's age affect his decision to get an MBA? What other, perhaps, factory affect Ben's decision to get an MBA? Assuming all salaries are paid at the end of the each year. What is the best option for Ben from a strictly financial standpoint? Ben believes that the appropriate analysis is to calculate the future value of each option. How would you evaluate this statement? What initial salary would Ben need to receive to make him indifferent between attending Wilton University and staying in his current positions? Suppose, instead of being able to cash for his MBA. Ben must borrow the money. The current borrowing rate is 5.4 percent. How would this affect his decision