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Long term investment decision, NPV method Jenny Jenks has researched the financial pros and cons of entering into a 1-year MBA program at her state
Long term investment decision, NPV method Jenny Jenks has researched the financial pros and cons of entering into a 1-year MBA program at her state university. The button and needed books for a master's program will have an upfront cost of $54.000. If she enrols in an MBA program, Jenny will out her current job, which pays $50,000 per year after taxes for simplicity treat any lost emings as part of the uptront cost). On average, a person with an MBA degree are an extra $20.000 per year after over a business career of 3 years. Jenny believes that her opportunity cost of capital is 5.1%. Given her estimates, find the net present value (NPV) of entering this MBA program. Are the benefits of further education worth the associated costa? The following lime line depicts the cash flows associated with this problem: Tuition (CF) -5104000 Escaming 520,000 $20,000 The represent value (NAV) of entering this MBA program is S. (Round to the nearest dolar) $20,000
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