ease help me determine the IRR of my MBA. The cost is $35,000. I am on scholarship so the degree has no cost to me out of pocket. I have not had to forgo any income over the 2 year program as I have done it part time. I have 16 years left to work, assuming that the increase in pay would be 15,000 per year for the remaining 16 years. Please let me know if you need any more details. Thank
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Please help me determine the IRR of my MBA. The cost is $35,000. I am on scholarship so the degree has no cost to me out of pocket. I have not had to forgo any income over the 2 year program as I have done it part time.
I have 16 years left to work, assuming that the increase in pay would be 15,000 per year for the remaining 16 years. Please let me know if you need any more details. Thank you.
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- The median annual income for someone with an Associates Degree is $31,936. The median annual income for someone with a Bachelor's Degree is $45,221. Suppose you have an associate's degree. If you quit your job and go back to school to study two years for a bachelor's degree, it will cost you $55,000 in tuition and fees plus approximately $64,000 in lost earnings. After graduation, how long will it take you to earn back that money?Jenny Jenks has researched the financial pros and cons of entering into a 1-year MBA program at her state university. The tuition and needed books for a master's program will have an upfront cost of $51,000. If she enrolls in an MBA program, Jenny will quit her current job, which pays $50,000 per year after taxes (for simplicity, treat any lost earnings as part of the upfront cost). On average, a person with an MBA degree earns an extra $21,000 per year (after taxes) over a business career of 39 years. Jenny believes that her opportunity cost of capital is 5.3%. Given herestimates, find the net present value (NPV) of entering this MBA program. Are the benefits of further education worth the associated costs? The net present value (NPV) of entering this MBA program is Are the benefits of further education worth the associated costs?As a future graduate of the University of Minnesota, someday you would like to endow a scholarship (meaning give the university money in your name) to pay for tuition expenses for future UMN students. Assume you just graduated (congratulations!). You plan to work for fifteen years after graduation before endowing this scholarship (at the end of the fifteenth year AFTER graduation). Annual tuition at UMN is $10,000 today, and is expected to grow at the long-term average rate of inflation of 3% per year forever. Savings are expected to earn a return of 7% per year forever. a) The first tuition payment is due one year after the scholarship is endowed. How much will the tuition be when your scholarship makes the first payment? b) You would like the scholarship to pay all tuition for one student per year for the twenty years following the creation of the endowment, how much money do you need to endow the scholarship? c)If you would like the scholarship to pay for tuition for one student…
- Answer the following problems and explain it step by step: 1. A man who is 30 years old at the start of the year, is considering getting an MFM degree. He currently earns $40,000 per year and expects to continue earning that amount for the rest of his working life (until age 65). He will give up his income for two years and will pay $20,000 per year in tuition, if he attends business school. In exchange, he expects a raise in his salary after completing his MFM. Assume that the post-graduation salary grows at a 5% annual rate and that the discount rate is 8%. What is the minimum expected starting salary after graduation for him that makes attending business school a positive-NPV investment? (Assuming that all cash flows happen at the end of each year.) 2. Bob and Rose are both 62 years old and plan to retire in 3 years. They will receive $5,000 per month after taxes from pension plans and $1,000 per month after taxes from Social Security after retirement. Regrettably, their living…1. Blake is considering whether to enroll full-time in a two-year, webpage design certificate program. Enrolling in this program requires him to leave his current job and devote all of his available time to his studies. He plans to make his decision based on standard human capital analysis, and has obtained the following data to help with his decision: Direct Costs (tuition and fees in each year): $2,000 Current annual earnings (i.e., w/o the additional education): $5,000 After completing the certificate program, Blake will work 3 years and then retire (thus, this is a 5-period model: t = 0, 1, 2, 3, 4). His estimated annual earnings, post-schooling, in each year are: $11,000 Blake's discount rate is 3% Create a table with the following information (shown in columns): time period, direct costs in each period, indirect costs in each period, expected earnings with additional schooling, and incremental (net) benefits in each period (discounted by the appropriate rate). Given the data,…Suppose that, at age 30, you might wish to leave your job and pursue a master’s degree. If you choose to remain at your job, your employer would pay you $74k per year until retirement, at age 55. If you go back to the university, you would have to sacrifice 2 years of income, but once you graduate, you would receive $117k per year until you retire at age 55. The master’s program you are interested in costs $22k per year. Note: The term “k” is used to represent thousands (× $1,000). Required: At an opportunity cost of 8%, determine the percentage difference between your most and least profitable alternatives, with the least profitable option as the basis for your calculation.Answer% Intermediate calculations must be rounded to 3 decimal places (at least). Input your answer as a percent rounded to 2 decimal places (for example: 28.31%).
- Consider the following scenario in relation to your Notary, Loan Signing Agent and Marriage officiant practice in Hawaii and determine the opportunity cost of leaving your job to become an entrepreneur. You currently make $90,000 per year at your job plus benefits (equal to 30% of your salary). On January 1 of the New Year, you start your own business. After the first year, your accountant informs you that you made $45,000 and out of that you paid $6,000 for health insurance. What was your opportunity cost? If your opportunity cost is higher than you would like, how can you lower your opportunity cost in the future years?A man who is 30 years old at the start of the year, is considering getting an MFM degree. He currently earns $40,000 per year and expects to continue earning that amount for the rest of his working life (until age 65). He will give up his income for two years and will pay $20,000 per year in tuition, if he attends business school. In exchange, he expects a raise in his salary after completing his MFM. Assume that the post-graduation salary grows at a 5% annual rate and that the discount rate is 8%. What is the minimum expected starting salary after graduation for him that makes attending business school a positive-NPV investment? (Assuming that all cash flows happen at the end of each year.) Use Time Value of Money calculations.Suppose your expenses for this term are as follows: tuition: $12,000, room and board: $6,500, books and other educational supplies: $1,500. Further, during the term, you can only work part-time and earn $3,500 instead of your full-time salary of $14,000. What is the opportunity cost of going to college this term, assuming that your room and board expenses would be the same even if you did not go to college? $13,500 $20,000 $24,000 $30,500
- Pete Morton is planning to go to graduate school in a program of study that will take three years. Pete wants to have $10,300 available each year for various school and living expenses. If he earns 5 percent on his money, how much must be deposited at the start of his studies to be able to withdraw $10,300 a year for three years?You are 35 years old and work with an institution where the retirement age is 65 years. For your retirement planning, you wish that from age 66 through 85, you should receive an annual sum of $50,000 at the end of each year. For this purpose, you will invest the required amount of money at retirement age. How much should you save at the end of each year from year 36 through 65 such that you have the amount of money, which if invested at your retirement age, will result in you receiving a sum of $50,000 each year from age 66 through 85? Assume an average interest rate of 6% throughout. Hint: Work the problem backwards. First solve the part from age 66 through 85. Then solve the part from age 36 to 65.You’ve landed your first job after graduation. Although retirement may seem like a long way off, you wisely enroll in your company’s retirement programs. In addition to maximizing your company’s 401K match you also plan to contribute $7000 per year to a self-directed fund for 35 years. Starting one year after you make your final contribution to this fund, how much could you withdraw each year from this account forever without impacting the fund’s balance? Assume the fund earns 6% per year.
