Chapter 4

The MBA Decision

Input area:

Current salary
Years until retirement
Salary increase
Tax rate
Wilton
Tuition per year
Books & Supplies
Starting salary
Signing bonus
Salary increase
Tax rate

60,000
40
3%
26%

$
$
$
$

65,000
3,000
110,000
20,000
4%
31%

Mount Perry
Tuition per year
$
Books & Supplies
$
Signing bonus (bono a la firma del contrat $
Starting salary (sueldo anual)
$
Salary increase (incremento salario)
Tax rate (tasa IR)
Both schools
Health insurance
Room & board increase

$
$

Discount rate

80,000
4,500
18,000
92,000
3.5%
29%

3,000
2,000
6.50%

Output area:

3. Current job
Aftertax income
Present value of salary
Wilton MBA
PV of tuition & expenses

Aftertax bonus
PV of bonus

PV of salary in two years

Value of salary today

PV of attending Wilton

PV of salary in one year

PV of salary today

PV of attending Mt. Perry

Aftertax salary

Mount Perry MBA

PV of tuition & expenses
PV of signing bonus
Aftertax salary

5. Current job PV minus

bonus after Wilton costs

Value in 2 years

Aftertax beginning salary

Pretax beginning salary

1. Cmo afecta la edad de Ben su decisin de obtener un ttulo de MBA?

2.
3.
4.
5.
6.