Jenny Jenks has researched the financial pros and cons of entering into a 1-year

Question

Jenny Jenks has researched the financial pros and cons of entering into a 1-year mba program at her state university. the tuition and books for the master's program will have an up-front cost of 100,000. On average, a person with an mba degree earns an extra 22,000 per year(after taxes) over a business career of 38 years. Jenny believes that her opportunity cost of capital is 5.7%.

A.) given her estimates, find the npv of entering this mba program.

B.) Are the benefits of further education worth the associated costs?

Please explain the calucalations and which numbers go in PMT, N, I/Y, PV, and FV

Explanation / Answer

PV=-100000

PMT=22000

I/Y=5.7%

N=38

CPT-FV

A. Steps In NPV

Please Enter

CF_0=-100000

CF_1=22000

F_1=38

I=5.7%

CPT-NPV

NPV=$239008.13

B. Yes

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