The Time Value of Money in the Foundations of Financial Management
Assignment:
Prior to beginning work on this discussion forum, read Chapter 9: The Time Value of Money in the Foundations of Financial Management textbook.
In this discussion forum, you will determine the rate of return of an MBA degree.
Initial Response:
For this discussion forum,
The first step is to calculate the cost of an MBA. If your employer sponsors the cost of your education, you can either use what you would have paid or use opportunity costs as a basis.
After you determine your initial investment, determine the net present value (NPV) of that investment. As an example, let us say “Joe” will be changing jobs when he achieves his MBA and will make 10% more annually as a result. Joe plans to work for 20 more years. His MBA cost was $50,000. Do you forecast that pursuing an MBA is worth the financial investment? Be sure to show all your calculations.
Reference Book:
Block, S. B., Hirt, G. A., & Danielsen, B. R. (2022). Foundations of financial management (18th ed.). McGraw-Hill Higher Education.
Chapter 9: The Time Value of Money
Chapter 11: Cost of Capital
The full-text version of this ebook is available through the VitalSource platform. Chapter 9 provides an overview of the concepts and mathematics relating to the time value of money.
Your initial response should be a minimum of 200 words.
Answer preview to The Time Value of Money in the Foundations of Financial Management
APA
398 words
