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1. How does Ben's age affect his decision to get an MBA?

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1. How does Ben 's age affect his decision to get an MBA? Age will be an important factor affecting his decision of getting an MBA course in multiple ways. After graduated six years ago, time has been taken off from education and invested into his career. Keeping on risingwith age and six years break from education, it will not only be more difficultto concentrate and remain good attitude towards studies, but also keep family and work responsibilities. Moreover, he would have only approximately 38 to 39 more years for work if he decides to take the program.Thisdoes not accord with his initial plan to work for 40 more years. From the financial aspect, the opportunity cost of taking MBA program will keep increasing as his …show more content…

PV = $1,462,896.46/ (1+6.5%) PV = $1,373,611.70 Timeline: Therefore, the net present value of Study at Wilton University: NPV = -$89,500 + $12,000 + $1,373,611.70 NPV = $1,296,111.70 Therefore, the best option for Ben is getting the MBA at Wilton University because it has highest net present value which is $1,461,953.54. 4. Ben believes that the appropriate analysis is to calculate the future value of each option. How would you evaluate this statement? Summary of the present value: Wilton University Mount Perry College Expenses Expenses 2 Years full costs $141,544.60 1 Year full costs $89,500 Income Income Future Income $1,591,331.25 Future Income $1,373,611.70 Signing Bonus $12,166.90 Signing Bonus $12,000 Net present value(NPV) $1,461,953.54 Net present value(NPV) $1,296,111.70 i. Keeping his current work for 40 years Future Value (FV) of Annuity: FV = PV (1+r)t FV = $935,283.49 (1+6.5%) 40 FV = $11,612,549.52 ii. Study at Wilton University Future Value (FV) of Annuity: FV = PV (1+r)t FV = $1,461,953.54 (1+6.5%) 40 FV = $18,151,724.12 iii. Study at Mount Perry College Future Value (FV) of Annuity: FV = PV (1+r)t FV = $1,296,111.70 (1+6.5%) 40

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