Concepts of Net Present Value and Opportunity Cost
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It is estimated that over 90,000 students will apply to the top 30 M.B.A. programs in the United States.
a. Using the concept of net present value and opportunity cost, explain when is rational for an individual to pursue an M.B.A. degree.
b. What would you expect to happen to the number of applicants if the starting salaries of managers with M.B.A. degrees increase by 15 percent? Why?
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This solution discusses net present value and opportunity cost.
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a. Using the concept of net present value and opportunity cost, explain when is rational for an individual to pursue an M.B.A. degree.
Opportunity cost is the cost of the next ...
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