The MBA Decision
Getting an MBA is one of these decisions that people at one point thought of as a level of education only few are able to attain. In time that perspective has changed and in recent calculations the number of MBA graduates has increased by 250% (Articlesbase, 2006). In the closing case, we address the questions below to help Ben with his MBA decision. Question 1
How does Ben’s age affect his decision to get an MBA?
Time plays a huge factor in Ben’s decision to get his MBA and to be able to make $100,000 a year along with the bonus he will need to start on his MBA as soon he can. We all know that in most cases corporations cannot discriminate against potential candidate’s age, they however, prefers to hire younger candidates over older candidates. By completing his MBA at a young age, he will have the opportunity to get on a path ramping-up his income potentially by 4% which should be another incentive for him to capture that at a younger age allowing him to capture the most possible income increase he would have, thereby maximizing his potential income. Waiting would delay possible increases and can possibly reduce his opportunity to be selected for such position. So Ben’s age plays a critical role for Ben and he should start his MBA program as soon as possible. Question 2
What other, perhaps non-quantifiable factors, affect Ben’s decision to get an MBA? Below are some of the non-quantifiable factors which may affect Ben’s decision to get an MBA: - If Ben works hard on his MBA, he could get high grades and possibly a high GPA which can have better opportunities in growing and/or receiving promotions; and in the same logic, bad grades can impact future in a negative way and lose possible recommendations or promotions. - As an MBA graduate, he will become over qualified for certain positions and if he had desired these positions, he would not be able to pursue it in the future. - With an MBA degree, graduates are usually viewed as employees with higher credibility than those with only an undergraduate degree. So Ben will be heard more, and trusted more with decisions. - As organizations offer their employees training on certain skills, Ben, as an MBA graduate, may find himself excluded from some of the training programs, as he is considered to be above the standards of employees who may need such training. - Jealous coworkers may show animosity towards Ben, which can result in his unhappiness at the workplace and perhaps push him to resign. - As an MBA graduate, may experience certain prestigious perks like having an office instead of a cube. - As an MBA graduate, Ben should have a high level of self-confidence and great sense of completion. This will come across when communicating with others and that is a desirable trait to have, making Ben a desirable employee to have should he desires to transfer to another area in the future. Question 3
Assuming all salaries are paid at the end of each year, what is the best option for Ben-from a strictly financial standpoint?
Books and other supplies (annual)
$ 3,500.00 Programs (year)
Health insurance (annual)
$ 3,000.00 Room and board (annual)
Total cost of MBA:
Present value of cost of MBA
$ 83,500.00 Present value of signing bonus
$ 15,023.47 Present value of salary
Net present value of option
References: Articlebase, Non-Fiction, (2006). What Makes An MBA Degree So Valuable? ArticlesBase SC #30415
O’Connell, Martha, National Public Radio, (2007). How To Choose a College that’s right for you.
Ross, S.A., Westerfield, R.W., Jaffe, J.F., Jordan, B.D. (2009). Corporate Finance: Core Principles & Applications, 2nd Edition
Top Universities, Fraternities and Sororities, (2010). The secret history of Greek societies.
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