Calculating the Net Present Value of my MBA degree
The net present value of my MBA degree is $2,047,244 with a rate of return of 68.09%. Though this seems like a very high number and rate of return, there are certain factors and figures that were taken into consideration when coming to this conclusion. Said evidence will be discussed further in this paper.
Using the Present Value of Education worksheet, we are entering values in order to calculate the NPV. The Base Year and Current Age is self explanatory. I am planning on being done with my MBA program in 2 years, and through PLU’s tuition program, my tuition rate will not increase over those two years. Currently, the total price of tuition for the MBA program is $39,510. Thus I entered “2” in the Years in College box and “$19,755” in the Education Cost Base Year. I entered “6.8%” for Education Cost Escalation based on what I read in The Mast this week stating that PLU will be raising their tuition price by that......
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