Develop a three to five page analysis on the projected return on investment for

Question

Develop a three to five page analysis on the projected return on investment for your college education and projected future employment. This analysis will consist of two parts.

Part 1: Describe how and why you made the decision to pursue a MBA. Include in that explanation calculations of expenses and opportunity costs related to that decision.

Part 2: Conduct research on your desired occupation and how much compensation (return) you expect to earn. How long will it take to pay back the return on this investment? Be sure to use the financial formulas (Net Present Value (NPV), Internal Rate of Return (IRR) and Payback) provided in Chapters 3 and 4 of your text.

The analysis should be comprehensive and reference specific examples from scholarly sources. The paper should be formatted according to APA.

Explanation / Answer

For me choosing to do an MBA is a big step, requiring self-discipline, time and financial commitments, and probably a break from your career.

Generally, graduates applying to masters in business administration (MBA) programmes are those who want to advance their careers, make a career change (from finance to consulting, for example) or move into entrepreneurship.

I chose this because of the following reasons:

In a nutshell, your job prospects are likely to be improved, you can expect an increased salary upon your return to work (depending on the sector, it could be 100 per cent improved - or more!) and you'll create a useful network of contacts (fellow students, lecturers and even speakers invited to campus) who could help you throughout your career. Most business schools also have very strong alumni networks.

Employers usually look favourably on the MBA qualification because they can be assured that those who have studied for one will have the right knowledge and skills to be able to work in their organisation. This is because the MBA focuses entirely on business-related issues such as finance, marketing, operations, technology, accounting, business strategy, organisational behaviour, economics and entrepreneurship.

Opportunity Cost
Opportunity cost is a cost associated with a decision that includes both the explicit and implicit costs. The unique aspect of opportunity cost is that it also includes costs associated with making an alternate decision. The costs associated with an alternative are called implicit costs. The accounting cost of making a decision is called the explicit cost.

While explicit, or accounting, costs are fairly easy to calculate, implicit costs are not as easy. Measuring the cost of the best foregone alternative can be not as easy as anticipated. By reading this Wiki right now, you are paying an implicit cost of your next best alternative. This can and often will be different for everyone. For you, it may be that the next best alternative instead of reading this is watching television. For someone else, it may be surfing the internet.

IMPLICIT COST
A cost that is represented by lost opportunity in the use of a company's own resources, excluding cash. These are intangible costs that are not easily accounted for. For example, the time and effort that an owner puts into the maintenance of thecompany|company rather than working on expansion.

EXPLICIT COST
A business expense that is easily identified and accounted for. Explicit costs represent clear, obvious outflows from a business that reduce its bottom-line profitability. This contrasts with less-tangible expenses such as goodwill amortization, which are not as clear cut regarding their effects on a business's bottom-line value. Good examples of explicit costs would be items such as wage expense, rent or lease costs, and the cost of materials that go into the production of goods. With these expenses, it is easy to see the source of the cash outflow and the business activities to which the expense is attributed

School
Harvard Duration of Program

Two Years Total Tuition $102,400 Supplies
$12,780 Ancillary & MBAA Fee
$6,040 Other Living Expenses*
$55,000 Sub Total
$176,220

Related Questions

Navigate

• Browse (All)
• Browse D
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.