Using the concept of net present value also opportunity cost

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Q. t is estimated that over 90,000 students will apply to the top 30 M.B.A. pro-grams in the United States (US) this year.

a. Using the concept of net present value also opportunity cost, explain when it is rational for an individual to pursue an M.B.A. degree.

b. Illustrate what would you expect to occur to the number of applicants if the starting salaries of managers with M.B.A. degrees remained constant but salaries of managers without such degrees increased by 15 percent? Why?

 

Reference no: EM1320341

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