Jane is unhappy with her current salary and is considering


Jane is unhappy with her current salary and is considering doing a two-year MBA. For simplicity assume the MBA starts today (i.e., in t=0). Tuition is $25,000 per year payable at the beginning of a year. Jane must additionally buy books and supplies worth $5,000 per year which are again payable at the beginning of a year. If Jane pursues the MBA she expects to get a job right after graduation. The job entails a signup bonus of $10,000 immediately when she starts the job and a starting salary of $86,000. Jane expects this salary to grow at a rate of 6% annually. Salaries are paid at the end of a year. Regardless of whether she pursues the MBA or stays in her current job Jane expects to retire in 38 years from today. Does it pay for Jane to do an MBA? Perform NPV calculation.

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Financial Management: Jane is unhappy with her current salary and is considering
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