Question
Please solve the following with the information provided below! Option 2: MBA (3-year evening program) Annual cost of MBA program: $25000 Length of MBA program
Please solve the following with the information provided below!
Option 2: MBA (3-year evening program) | |
Annual cost of MBA program: | $25000 |
Length of MBA program | 3 years |
Initial base pay differential: | $20000 increase |
Growth rate of salary differential | 3% |
Discount rate: | 2.27% |
Age | Years after initial investment | Tuition | Salary differential cash flow | PV of Salary differential |
30 (pay tuition) | 0 |
|
| |
31 (pay tuition) | 1 |
|
| |
32 (pay tuition) | 2 |
|
| |
33 | 3 |
|
|
|
34 (salary increase begins) | 4 |
|
|
|
35 | 5 |
|
|
|
36 | 6 |
|
|
|
37 | 7 |
|
|
|
38 | 8 |
|
|
|
39 | 9 |
|
|
|
40 | 10 |
|
|
|
41 | 11 |
|
|
|
42 | 12 |
|
|
|
43 | 13 |
|
|
|
44 | 14 |
|
|
|
45 | 15 |
|
|
|
46 | 16 |
|
|
|
47 | 17 |
|
|
|
48 | 18 |
|
|
|
49 | 19 |
|
|
|
50 | 20 |
|
|
|
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started