Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. long-term investment decision, npv method jenny je

Long-term investment decision, NPV method Jenny Jenks has researched the financial pros and cons of...

70.2K

Verified Solution

Question

Finance

image

Long-term investment decision, NPV method Jenny Jenks has researched the financial pros and cons of entering into a 1-year MBA program at her state university. The tuition and needed books for a master's program will have an upfront cost of $100,000. On average, a person with an MBA degree earns an extra $21,000 per year (after taxes) over a business career of 40 years. Jenny feels that her opportunity cost of capital is 6.4%. Given her estimates, find the net present value (NPV) of entering this MBA program. Are the benefits of further education worth the associated costs? The following time line depicts the cash flows associated with this problem: 40 Tuition (CFo$ Extra earnings $100,000 $21,000 $21,000.$21,000 The net present value (NPV) of entering this MBA program is (Round to the nearest dollar.)

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Basic Math
1.2K views

2 What is the remainder when 2x 3x 2x 1 is divided by x 2...

Basic Math
1.2K views

Consider the series X∞ k=3 √ k/ (k − 1)^3/2 . (a) Determine whether or not...

Chemistry
1.2K views

5. The formation constant of the silver-ethylenediamine complex, Ag(NH2CH2 CH2NH2)+, is 5.0 x 104. Calculate the concentration...

Physics
1.2K views

A particle in the infinite square well (width a) starts out being equally likely to be...

Physics
1.2K views

39 River of width 500 m is flowing at a speed of 10 m s...

Basic Math
1.2K views

Find I f z z 1 z2 2z integrated on z 3 4 CCW

Statistics
1.2K views

Watch help video At a customer service call center for a large company the number...

Algebra
1.2K views

17 Solve this equation x 12x 20 Type your answer as without spaces or Cannot...

Accounting
1.2K views

La empresa XYZ reporta la siguiente informacin financiera para el 2014. ...

Accounting
1.2K views

True or False Completion is the management assertion being tested by the auditor...

Accounting
1.2K views

AirQual Test Corporation provides on-site air quality testing services. The company has provided the following...

Accounting
1.2K views

Problem1 (2 Points) The following information relates to the Broadway Suites on December 31, 20X8:...