What is the net present value of a baruch mba

Assignment Help Finance Basics
Reference no: EM13304332

A typical Baruch MBA student begins the 2 year full time program at the age of 28. Assume that he or she graduates at the age of 30 and works until retiring at age 65. Also assume that the student would have earned $60,000 per year for the 2 years had they not gone to school and that tuition, books and fees totaled $15,000 per year. The student requires a return on their education investment of 5.0%.
A) What is the Present Value of the costs of getting the MBA at Baruch, assuming that fees are paid at the beginning of the year and that salaries are paid at the end of the year?
B) Assume the MBA degree leads to an extra $20,000 of earnings per year above the salary without having the degree. What is the Present Value of the incremental $20,000 per year?
C) Using the above calculations what is the Net Present Value of a Baruch MBA?

Reference no: EM13304332

Questions Cloud

Use black-scholes formula : Calculate the price of a 4-month European call option on a dividend-paying stock with a strike price of $30 when the current stock price is $34, the risk-free rate is 6% per annum and the volatility is 40% per annum. A dividend of $1.00 is exp..
Use black-scholes formula. : Calculate the price of a 4-month European call option on a dividend-paying stock with a strike price of $30 when the current stock price is $34, the risk-free rate is 6% per annum and the volatility is 40% per annum. A dividend of $1.00 is exp..
A six-month american put option with a strike price of $73 : A stock price is currently $70. Over each of the next two three-month periods, it is expected to go up by 8% or down by 6%. The risk-free rate is 4% per annum with continuous compounding. What is the value of a six-month American put option wi..
How much would payables increase : Data on Mertz Co., for the most recent year are shown below, along with the payables deferral period (PDP) for the firms against which it benchmarks. The firm's new CFO believes that the company could delay payments enough to increase its PDP ..
What is the net present value of a baruch mba : Using the above calculations what is the Net Present Value of a Baruch MBA?
What is the firm''s wacc : Suppose a firm is funded 30% with debt (yield of 9%) and has a 32% tax rate. What is the (levered) cost of equity assuming the unlevered cost of equity is 12%? Round your answer to two decimal places.
Financial-gains or losses and market trends : Reports are typically associated with data that is useful for meetings, shareholders and sometimes public information. Organizing the information to make it understandable is one factor to consider, however there are reports that are very tedious inf..
The project npv if the initial outlay is $21 million : A project can generate unlevered cash flow of $3 million per year in perpetuity. Suppose the firm considering this project finances its operations with an equal mix of debt and equit
What is the firm''s wacc if the corporate tax rate is 35% : A firm has 1,000,000 shares of stock outstanding, and each share is currently worth $22. The stock has a beta of 1.2. The firm also has 10-year bonds outstanding with a par value of $10,000,000

Reviews

Write a Review

Finance Basics Questions & Answers

  Idetifying financial markets

Identify and describe the different financial markets, their functions, primary instruments, and the investor types. But, my initial answer to this question would have not been initially focused on the primary and secondary markets.

  What annual contributions to the retirement fund

During the period before retirement you can earn 9 percent annually, while after retirement you can earn 11 percent on your money.

  What is the impact of overhead allocation

What is the impact of overhead allocation when the project is underway?

  How much will each of her children receive from diane estate

Diane has separate property valued at $75,000 and Sam has separate property valued at $90,000. If Diane were to die intestate in Texas, how much will each of her children receive from Diane's estate?

  What is the required rate of return on a preferred stock

What is the required rate of return on a preferred stock with a $50 par value, a stated dividend of 10% of par, and a current market price of (a) $54, (b) $89, (c) $101, and (d) $132 (assume the market is in equilibrium with the required return eq..

  Should the company expand into this business

Sales per year of $350,000 and cost of production of $100,000. 35% tax rate. 10% required return on project. Should the company expand into this business?

  What is the maximum initial cost the company

What is the maximum initial cost the company would be willing to pay for the project? (Enter your answer in dollars, not millions of dollars, i.e. 1,234,567. Do not round intermediate calculations and round your final answer to the nearest whole d..

  Determine the gain from merger

Velcro Saddles is planning the acquisition of Pogo Ski Sticks, Corporation. The values of the two companies as separate entities are $20 million and $10 million, respectively.

  What is the approximate break-even level

If the plant lasts for 3 years and the cost of capital is 12%, what is the approximate break-even level (accounting) of the annual sales?

  How do you record goodwill

Measure each of these items and prepare the journal entry that should be made to record the purchase on Energy's books.

  Calculate the required rate of return

Calculate the required rate of return, in percentages, for the Wagner Assets Management Group, which holds 4 stocks.

  What would be the total return of the bond in dollars

A 8.1 percent coupon bond with 17 years left to maturity is priced to offer a 6.55 percent yield to maturity. You believe that in one year, the yield to maturity will be 7.2 percent.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd