The MBA Decision

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The MBA Decision case analysis

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1. I think that age is one of the most important factors, which affects someone`s decision. In Ben`s case, He is 28 years old and is working now. Let us presume that he started his work at the beginning of 28, which means he would not have enough money to get an MBA. If he had an opportunity to work in any company from age of 26, he would save his salary for two years to get an MBA. With this reason, Ben`s age affects his decision to get an MBA.

2. I think that there are several nonquantifiable factors, which affect Ben`s decision to get an MBA. The first important thing would be his current family situation, such as whether he got married or not. If married, his children would be another factor, which affects Ben`s decision. The second thing would be his willingness to study. He would not consider to get an MBA, if he is not eager to learn or study, even though he knows that he would get a lot of money after finished his MBA course.

3. To answer this question, I think that I need to calculate three options.
1) The first option is keeping his current work for 35years. His salary will start from $50,000 with 3 percent of growth rate, and the appropriate discount is 6.5 percent and 26 percent of tax rate, these are the factors to be considered to calculate the PV of his first option.
In this case, we can use the following formula of growing annuity to get present value.
PV =

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