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Business, 07.10.2020 22:01 branj1317

You are 30 years old today and are considering studying for an MBA. You just received your annual salary of $50,000 and expect it to grow by 3% per year. MBA typically earns $80,000 upon graduation, with salaries growing by 4% per year. The MBA program you are considering is a full-time, 2-year day program that costs $30,000 per year, payable at the end of each study year. You want to retire on your 65th birthday. The relevant discount rate is 8%\.\* Is it worthwhile for you to quit your job in order to do an MBA (ignore income taxes)? * Meaning: Your MBA is an investment like any other investment. On other investments, you can earn 8% per year, the MBA has to be judged against this standard.

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