Question
Jenny Jenks has researched the financial pros and cons of entering into a 1-year mba program at her state university. the tuition and books for
Jenny Jenks has researched the financial pros and cons of entering into a 1-year mba program at her state university. the tuition and books for the master's program will have an up-front cost of 50000. If she enrolls in an mba program, Jenny will quit her current job, which pays 50000 per year after taxes (for simplicity, treat any lost earnings as part of the up-front cost). on average, a person with an mba degree earns an extra 20000 per year(after taxes) over a business career of 40 years. Jenny believes that her opportunity cost of capital is 6%. given her estimates, find the npv of entering this mba program. Are the benefits of further education worth the associated costs?
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