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Long-term investment decision, NPV method Jenny Jeniks has researched the financial pros and cons of entering into a 1-year MBA program at her stale university.

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Long-term investment decision, NPV method Jenny Jeniks has researched the financial pros and cons of entering into a 1-year MBA program at her stale university. The tuition and needed books for a master's program will have an upfront cost of $52,000. If she enrolls in an MBA program, Jenny will quit her current job Which pays $50,000 per year after taxes (for simplicity, treat any lost eamings as part of the upfront cost). On average, a person with an MBA degree eams an extra $22,000 per year (after taxes) over a business career of 39 years. Jenny believes that her opportunity cost of capital is 5.8%. Given her estimates, find the net present value (NPV) of entering this MBA program. Are the benefits of further education worth the associated costs? The following time line depicts the cash flows associated with this problorm: The net present value (NPV) of entering this MBA program is: (Round to the nearest dollac.) Are the benefits of turther oducation worth the associated costs? (Select the best answer below.) Yes, the benefits of further education are worth the associated costs. Since the net prosent value (NPV) of entening this MBA program is groater thain s0, Jonny will eam a retuen greater than her opportunity cost of capital. This decision will inciease Jenny's woath by an amount equal to tho NPV. No, the beriefits of further education are not worth the associated costs. The not present value (NPV) of entering this MBA program is loss than $0, this means Jenny will eam a return lower than her opportunity cost of capital. This decision will decreaso Jenny's weath by an anount equal to the NPV

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