Do Homework - Cristian Clementi - Google Chrome Secure | https://www.mathxl.com yerHomework.aspx?homeworkId=448 577575 &questionld = 1 &flushed = false&cld-4704237¢erwin =yes FIN-350-MWF1230A-Fundamentals of Business Financs Cristian Clementi 12/10/17 3:14 AM Homework: Module 8: Chapter 10 Score: 0 of 5 pts P10-11 (similar to) Save 3 of 8 (0 complete HW Score: 0%, 0 of 40 pts Question Help Long-term investment decision, NPV method Jenny Jenks has researched the nancial pros and cons of entering into a 1-year MBA program at her state unlversity. The tuition and needed books for a masters program wil have an uptront cost of S 104.000. On average. a person with an MBA degree earns an extra S21.000 per year after taxes over a business career of 36 years. Jenny feels hat her opportunity cost of capital is 5.6% Given her estimates find he net present al e NP of entering this MBA program. Are the benerts of further education wortn the assodated costs? The following time ine depicts the cash flows associated with this problem: 36 Tuition (CFO) Extra earnings -$104,000 $21,000 $21,000 21,000 The net present value (NPV) of entering this MBA program is $ 218,261. (Round to the nearest dollar.) Are the benetits of further education worth the associated costs? (Select the best answer below.) O No, the benefits of further education are not worth the associated costs. The net present value (NPV) of entering this MBA program is less than $0, this means Jenny will earn a return lower than her opportunity costfcpal This decision will decrease O Yes, the benefts of further education are worth the associated costs. Since the net present value (NPV) of entering this MBA program is greater than S0, Jenny will earn a return greater than her opportunity cost of capital This decision will increase Jenny's wealth by an amount equal to the NPV Jenny's wealth by an amount equal to the NPV Click to select your answer and then click Check Answer All parts showing Clear All Final Check 3:15 AM O Type here to search dx ^ 12/10/20179