Mba Case Study
The MBA Decision
Question 1 :
I believe age is an important factor for Ben to decide whether or not to get an MBA. There are certain points specific to age that can be taken into consideration here:
1. Younger employees have more chances of growth (promotions) as they still have more years they can work before they reach the retirement age.
2. Younger employees usually have a better chance to get more raise throughout their career (because of more number of work years) as compared to older employees.
I believe Ben should consider the cost of tuition and future salaries along with the potentially gained experience and lost salary (which he could get if he continue his current job) to make a more profound decision.
Question 2 :
Nonquantifiable factors are those that can’t be converted into a number value. Thinking of Ben’s situation, some of the Nonquantifiable factors that could affect his decision could be:
1. Family – If Ben has a family and kids to raise, and especially when he is the only/major source of income for his family, taking a year or two off from work and getting an MBA would make their financial situation worse. 2. Satisfaction – He should think about whether he’s satisfied with his current salary level as far as supporting him and his family goes or these is a need for more money. 3. Uncertainty – Getting an MBA is more like an investment for him, where he’s investing tuition cost, amount lost as salary (which he could get if he continue his current job) and other associated expenses and the return for him is expected higher salaries in future. Though with every investment there’s an associated risk. The risk for him is the uncertainty that he may not get a job, or the economy slows down and the pay scale for Investment Manager drops.
I believe all these Nonquantifiable factors should also be considered before making a decision.
Question 3 :
From a strictly financial standpoint, let us assume all
Question 1 :
I believe age is an important factor for Ben to decide whether or not to get an MBA. There are certain points specific to age that can be taken into consideration here:
1. Younger employees have more chances of growth (promotions) as they still have more years they can work before they reach the retirement age.
2. Younger employees usually have a better chance to get more raise throughout their career (because of more number of work years) as compared to older employees.
I believe Ben should consider the cost of tuition and future salaries along with the potentially gained experience and lost salary (which he could get if he continue his current job) to make a more profound decision.
Question 2 :
Nonquantifiable factors are those that can’t be converted into a number value. Thinking of Ben’s situation, some of the Nonquantifiable factors that could affect his decision could be:
1. Family – If Ben has a family and kids to raise, and especially when he is the only/major source of income for his family, taking a year or two off from work and getting an MBA would make their financial situation worse. 2. Satisfaction – He should think about whether he’s satisfied with his current salary level as far as supporting him and his family goes or these is a need for more money. 3. Uncertainty – Getting an MBA is more like an investment for him, where he’s investing tuition cost, amount lost as salary (which he could get if he continue his current job) and other associated expenses and the return for him is expected higher salaries in future. Though with every investment there’s an associated risk. The risk for him is the uncertainty that he may not get a job, or the economy slows down and the pay scale for Investment Manager drops.
I believe all these Nonquantifiable factors should also be considered before making a decision.
Question 3 :
From a strictly financial standpoint, let us assume all
References: : http://en.wikipedia.org/wiki/Present_value http://users.wfu.edu/palmitar/Law&Valuation/chapter%201/1-3-3.htm http://www.financeformulas.net/Present_Value.html http://www.ehow.com/how_5789603_calculate-value-future-salary-payments.html