Ben Gates graduated from college six years ago with a finance undergraduate degree. See below for the full question.

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THE MBA DECISION Ben Bates graduated from college six years ago with a nance undergraduate degree. Although he is satised with his current job, his goal is to become an investment banker. He feels that an MBA degree would allow him to achieve this goaL After examining schools, he has narrowed his choice to either Wilton University or Mount Perry College. Although internships are encour aged by both schools, to get class credit for the internship, no salary can be paid. Other than internships, neither school will allow its students to work while enrolled in its MBA program. BencmrenywmksmmennneymanagementmofDeweyandlouislhsmnualsalmym thennis$65,000peryear,andhis salaryisexpectedtoincreaseathercentperyearunlrem meat. Heiscunently28yearsoldandexpectstoworkfor40moreyearsJ-liscunentjobincludes afullypaidhealiinsurance plan, andhiscurrentaveragetaxtateistpereent. Belhasasavings acoountwithenoughmoney tooovertheentireoostofhisMBApmgram. The Ritter College of Business at Wilton University is one of the top MBA programs in the country. The MBA degree requires two years of full-time enrollment at the university. The annual tuition is $70,000, payable at the beginning of each school year. Books and other sup- plies are estimated to cost $3,000 per year. Ben expects that after graduation from Wilton, he will receive a job offer for about $110,000 per year, with a $20,000 signing bonus. The salary at this job will increase at 4 percent per year. Because of the higher salary, his average income tax rate willincrease to 31 percent. The Bradley School of Business at Mount Perry College began its MBA program 16 years ago. The Bradley School is smaller and less well known than the Ritter College. Bradley offers an accelerated, oneyear program, with a tuition cost of $85,000 to he paid upon matriculation. Books and other supplies for the program are expected to cost $4,500. Ben thinks that he will receive an offer of $92,000 per year upon graduation, with an $18,000 signing bonus. The sal- ary 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 room and board expenses will cost $2,000 more per year at both schools than his current expenses, payable at the beginning of each year. The appropriate discount rate is 6.3 percent. 1. How does Ben's age affect his decision to get an MBA? 2. What other, perhaps nonquantiable factors affect Ben's decision to get an MBA? 3. Assuming all salaries are paid at the end of each year, what is the best option for Ben from a strictly nancial standpoint? 4. Ben believes that the appropriate analysis is to calculate the future value of each option. How would you evaluate this statement? Both schools oer a health insurance plan that will cost $3,000 per year, payable at the beginning of the year. Ben also estimates that room and board expenses will cost $2,000 more per year at both schools than his current expenses, payable at the beginning of each year. The appropriate discount rate is 6.3 percent. 1. 2. 3. How does Ben's age affect his decision to get an MBA? What other, perhaps nonquantiable factors affect Ben's decision to get an MBA? Assuming all salaries are paid at the end of each year, what is the best option for Ben from a strictly nancial 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 position? Suppose, instead of being able to pay cash for his MBA, Ben must borrow the money. The current borrowing rate is 5.4 percent. How would this affect his decision? Will pay more if needed via PayPul or whatever works for you Email me: imronsoiid200@gmail.com