Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Complete the following steps and then answer the two questions below assuming a discount rate of 6% . Estimate the total cost of your MBA

Complete the following steps and then answer the two questions below assuming a discount rate of 6%.

  1. Estimate the total cost of your MBA program and set this as your Year 0 (initial year) outflows.
  2. Estimate your annual salary for the next 10 years following your MBA program. Generally, salaries at least account for a COLA (cost of living adjustment). You should assume a raise of at least 2% each year that matches target U.S. inflation levels. You should have one figure for each year.
  3. Estimate what your annual salary for the next 10 years would be without an MBA. Generally, salaries at least account for a COLA (cost of living adjustment). You should assume a raise of at least 2% each year that matches target U.S. inflation levels. You should have one figure for each year.
  4. Calculate the added salary bump from obtaining your MBA (e.g., Year 1 Added Cash Flow = Year 1 MBA Salary - Year 1 Bachelors Salary). You will end up with 10 cash flows, this will represent your Cash flows for Year 1 through year 10.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Economics Of Money Banking And Financial Markets

Authors: Frederic S. Mishkin

6th Edition

0321113624, 978-0321113627

More Books

Students also viewed these Finance questions