Mini Case - The MBA Decision 1. How does Ben’s age affect his decision to get an MBA? Ben’s age is a very important factor which can affect his decision to get an MBA degree. Firstly, Ben is now 28 years old and expects to work for 40 more years. So he has an expected work life of 68 years. So the earlier he gets an MBA, the better for him. For example: probably it won’t benefit him much if he decided to get an MBA at the age of 60. No one would hire him as an investment banker even if he had an MBA that time. Secondly, getting an MBA degree will cost Ben a lot of money. Currently at the age of 28, he already has a job experience of around 6 years. This job allowed Ben to have a savings account with enough money to cover the …show more content…
Suppose, instead of being able to pay cash for his MBA, Ben must borrow the money. The current borrowing rate is 5.4 percent. How would this affect his decision? In this case Ben has to consider the cash out flows he has to face to repay the loan (principle + interest). Assuming Ben takes a 5 year loan, with the borrowing rate of 5.4% and discount rate of 6.5%, the loan turns out to be a slightly better funding option for his MBA (with increased NPVs). Considering Ben borrows the money, the NPV values of the three options are as follows: i. Not getting an MBA: NPV = $935,283 (no change from previous) ii. Getting MBA from Wilton University: NPV = $1,471,596 iii. Getting MBA from Mount Perry College: NPV = $1,303,654 Hence it can be seen that still the best option for Ben would be to get an MBA from Wilton University as it has the highest NPV value. However his decision on whether to borrow the money or not might get affected. (Detail calculation for Question #6 is given later in the ‘calculation’ section) Calculation Question # 3 i) Not getting an MBA * Cash Inflow: * Salary = $60,000 x (1 – 26%) = $44,400 [after 26% tax deduction] Expected to increase at 3% per year Appropriate discount rate = 6.5% Working years left = 40 Formula for Growing Annuity is as follows: PV = C 1-1+g1+rTr-g Here, C = $44,400, g = 3%, r = 6.5, T = 40 Hence, PV of Cash Inflow = $44,400 1-1+3%1+6.5%406.5%-3% = $935,283 * Cash
The fixed cost is assumed that Larry has discovered the other fixed cost incurred. The total investment is $800,000. The worst case scenario assumes that Larry got a total line of credit from the bank in the amount of $400,000 and invested $400,000 from other source. The Notes payable – short term and the long-term debt is (11.8 + 3.7) = 15.5 % from Table F in the handout. The Loan interest and payment per year is ($400,000 * 0.155)= $62,000. The Income data from Table F indicates that there is a 0.4% of all other expenses net out of the total sales which equals to $109,908 (5,700,666 gallons * $4.82 *0.4%) .
Age plays a huge part in Ben 's decision to get his MBA and to be able to become an investment banker he will need to start on his MBA as soon as possible. The longer Ben waits, the harder it will be for him to accomplish this goal. By completing his MBA at a young age, he will have the opportunity to potentially raise his income by 4% each year. Also, most businesses are not allowed to discriminate against an applicant 's age, but they do prefer to hire younger applicants over older applicants. The longer Ben waits, the less chance he will get the opportunity to become an investment banker, as well as
Age will be an important factor affecting his decision of getting an MBA course in multiple ways. After graduated six years ago, time has been taken off from education and invested into his career. Keeping on risingwith age and six years break from education, it will not only be more difficultto concentrate and remain good attitude towards studies, but also keep family and work responsibilities. Moreover, he would have only approximately 38 to 39 more years for work if he decides to take the program.Thisdoes not accord with his initial plan to work for 40 more years.
There are several reasons as to why I settled on MBA - Finance as my concentration of choice. First and foremost, from quite an early age, I had a great liking for analytical subjects. Indeed, I found mathematics more interesting than science subjects. This is a passion that has continued to propagate in me and for this reason; I would say that my selection of the said concentration comes naturally. Next, my concentration of choice happens to be in line with my long-term career goals. As I have already indicated elsewhere in this text, I intend to become a finance director in a reputable organization. I view an MBA in Finance as a stepping stone towards this particular goal. It is important to note that competition for jobs in the
There are a few key reasons why I want to return to school to earn an MBA. First and foremost, returning to school will be an excellent chance to expand my career opportunities. Currently I am an optometrist in the United States Army and I am the Chief of the Optometry Clinic at Schofield Barracks in Hawaii. This is a great assignment, and I chose a rewarding career in optometry. I really do enjoy caring for patients and their vision. But I like having options. I currently manage a staff of sixteen, and they present me with more challenges on a daily basis than most of my patients do. After having had this management opportunity, I realize that I enjoy managing people and I like solving organizational problems. Earning an MBA will
Ms Yu seeks an MBA to progress his career towards public accounting and use her knowledge to improve what she sees as the next level of auditing. I fully support her wish to advance abilities needed to enact her aims and achieve her considerable potential.
As a Christian, you realize that success is more than just earning a lot of money or achieving a management position. Even if you are earning six figures right after graduation, this will not ultimately satisfy you. Your ultimate satisfaction will come from a life lived by integrity and honesty. A Christian MBA not only trains you in the practice of business excellence, but also emphasizes the principles of life excellence. At the end of the program, you have the tools that will earn you financial reward, but you will also be successful in the eyes of God -forever.
To achieve my goal of being the Business/Divisional Manager, I need to have an MBA degree which is one thing that I have already started and will surely be completing successfully within three years’ time i.e. end 2015. And I am already having the management experience of 6 years now. With 4 years of experience as a Head of the department, and that too with reputable aviation firm in South Africa.
Ken graduated from BCC and went directly into the work force. However, he is currently enrolled at Western Governors University for his bachelor’s degree. But Ken doesn’t plan on stopping there. Ken has a plan for his future, “I do plan on enrolling into a MBA program as soon as I get my bachelor’s degree.”
Our lives are a series of deliberate day-to-day decisions that develop into milestones which ultimately define who we are as individuals. One such defining point in my life is to pursue further education by obtaining a Master of Business Administration. The additional knowledge and skills that I will obtain will benefit me as I grow further in my career. My professional experience coupled with the Eller MBA will expand my knowledge as I work toward my short-term and long-term goals. The program will provide increased resources while utilizing my experience to enhance my leadership skills, work toward my life goals, expand my knowledge of business and bring personal experience and insight in accounting and finance to the program.
a student is undecided then advise them at least to focus on a Bachelors degree with a focus in business.
Scenario 2 shows the practice having moderate growth and there is no decrease in the associate fee. Even though the growth rate is 8% and not 17.5%, the company can still repay the loan because the CATO is positive throughout the years. Miller might not be able to repay the loan that fast, like scenario 1, but would be able to repay it in 10 years.
A year and half has passed since I’ve completed my undergraduate degree. In this time, I’ve had a chance to reflect on my career goals. I am now ready to earn my MBA in health care management. With this degree, I will be able to accomplish my career goals and objectives. I plan to use my master 's degree to help me pursue a career in health care management. My career goal is to become a health care manager in one of my area hospitals. I’ve research the strategies needed to successfully complete a MBA program. I’m motived and fully prepared to start working on my MBA. I ecstatic to embark on this new journey
Ben's age will affect his decision to get an MBA in the sense that the earlier he gets an MBA the better off he will be. Being currently 28 years old, and he has been working for six years already MBA normally