Tax Rate on Salary
Program Length in Years
Room and Board
Discount rate 6.5%
How does Ben’s age affect his decision to get an MBA?
Ben’s current age is a key factor in his decision making process. If he starts a program now, he will be in his early thirties when his finishes, since it usually takes about two years to complete an MBA program. If he begins the program later in his professional career, he might have a harder time with the material. It is more likely that he will have forgotten vital information due to the amount of years out of college. Also, the further he gets in his career before starting, the harder it will be to justify quitting his job to go to college. This is due to the fact that the two colleges that his is considering require its students to not work during the program. 2.
What other, perhaps non-quantifiable factors, affect Ben’s decision to get an MBA? a.
It will be equally important for Ben to review non-quantifiable factors than just looking at quantifiable factors. Some of the factors that are non-quantifiable could be: i.
The relationship between grades earned in the MBA program and expected correlated salaries after graduation. ii.
Another would be the possible employers of each particular program. There are employers that may only hire MBAs from particular schools. Based on prior programs, Ben could dig deeper into the hiring companies of past MBA graduates to find information, such as culture and employee satisfaction. iii.
Ben, of course, needs to understand that he will have achieved a high level of personal growth. He should have a lot of pride and personal satisfaction. He should be happy to have the opportunity work as...
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