What is the net present value of a baruch mba

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A typical Baruch MBA student begins the 2 year full time program at the age of 28. Assume that he or she graduates at the age of 30 and works until retiring at age 65. Also assume that the student would have earned $60,000 per year for the 2 years had they not gone to school and that tuition, books and fees totaled $15,000 per year. The student requires a return on their education investment of 5.0%.
A) What is the Present Value of the costs of getting the MBA at Baruch, assuming that fees are paid at the beginning of the year and that salaries are paid at the end of the year?
B) Assume the MBA degree leads to an extra $20,000 of earnings per year above the salary without having the degree. What is the Present Value of the incremental $20,000 per year?
C) Using the above calculations what is the Net Present Value of a Baruch MBA?

Reference no: EM13304332

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