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Running Head: Return on Investment1Return on Investment- Education FundingNameBUS 650: Managerial FinanceInstructorJuly 1, 2019
Running Head: Return on Investment2IntroductionReturn on investment (ROI) measures the gain or loss generated on an investment relative to the amount of money invested. ROI is defied as a ratio: Return orinvestment = Profit / investment (Schneider, 2017). ROI measures the profits of investment and the expense but into said investment. This paper will list the reason I went back to college to pursue my Masters in Business Administration (MBA). The cost of college can be expensive by using Net Present Value (NPV), Internal Rate of Return (IRR) and Payback formulas to see how long it would take me to eventually payback mycollege tuition.Pursuing a Master of Business Administration (MBA)With the way the economy is going most people are returning to college for reasons of their own. Some if not many return to increased their finances, to better theirfamily circumstances, to grow or move up within their company or current job, self-growth and to start their own business. My decisions to return to pursue a degree in Master of Business Administration (MBA) was to get promoted within the company I currently work for. Recently I started working with my friend on a start up company in order for me to have the role I want in this company I needed to have a MBA. My bachelor’s degree is in Network administration and I needed the MBA to have a positionwith the company. With the knowledge from my current degree it will get me the insight I would to help run a business effectively.