Jenny Jenks has researched the financial pros and cons ofentering into a 1-year mba progra
Jenny Jenks has researched the financial pros and cons ofentering into a 1-year mba program at her state university. thetuition and books for the master's program will have an up-frontcost of 100,000. On average, a person with an mba degree earns anextra 22,000 per year(after taxes) over a business career of 38years. Jenny believes that her opportunity cost of capital is5.7%.
A.) given her estimates, find the npv of entering this mbaprogram.
B.) Are the benefits of further education worth the associatedcosts?
Please explain the calucalations and which numbers go in PMT, N,I/Y, PV, and FV