Chapter 4 The MBA Decision Input area 65,000 40 3% 26% Current salary Years until retirement Salary increase Tax rate Wilton Tuition per year Books & Supplies Starting salary Signing bonus Salary increase Tax rate 70,000 3,000 110,000 20,000 31% Mount Perry Tuition per year Books & Supplies Signing bonus Starting salary Salary increase Tax rate 85,000 4,500 18,000 92,000 3.5% 29% Both schools Health insurance Room & board increase 3,000 2,000 6.30% Discount rate Output area 3. Current job 48,100.00 Aftertax income Present value of salay1044 72837 1,044,728.37 Miton MBA $ 151,377.23 13,800.00 12,212.72 PV of tuition & expenses Aftertax bonus PV of bonus Aftertax salary PV of salary in two years Value of salary today 75,900.00 $ 1,862,801.41 $ 1,648,542.05 1.812.132.01 PV of attending Witon 1812 13201 Mount Perry MBA PV of tuition & expenses PV of signing bonus Aftertax salary PV of salary in one year PV of salary today PV of attending Mt. Perry 89,462.37 12,022.58 65,320.00 $1,509,165.86 $ 1,419,723.29 1,521,208 24 5. Current job PV minus bonus after Wilton costs Value in 2 years Aftertax beginning salary Pretax beginning salary Chapter 4 The MBA Decision Input area 65,000 40 3% 26% Current salary Years until retirement Salary increase Tax rate Wilton Tuition per year Books & Supplies Starting salary Signing bonus Salary increase Tax rate 70,000 3,000 110,000 20,000 31% Mount Perry Tuition per year Books & Supplies Signing bonus Starting salary Salary increase Tax rate 85,000 4,500 18,000 92,000 3.5% 29% Both schools Health insurance Room & board increase 3,000 2,000 6.30% Discount rate Output area 3. Current job 48,100.00 Aftertax income Present value of salay1044 72837 1,044,728.37 Miton MBA $ 151,377.23 13,800.00 12,212.72 PV of tuition & expenses Aftertax bonus PV of bonus Aftertax salary PV of salary in two years Value of salary today 75,900.00 $ 1,862,801.41 $ 1,648,542.05 1.812.132.01 PV of attending Witon 1812 13201 Mount Perry MBA PV of tuition & expenses PV of signing bonus Aftertax salary PV of salary in one year PV of salary today PV of attending Mt. Perry 89,462.37 12,022.58 65,320.00 $1,509,165.86 $ 1,419,723.29 1,521,208 24 5. Current job PV minus bonus after Wilton costs Value in 2 years Aftertax beginning salary Pretax beginning salary