MBA Case - MBA Case 1. In terms of age there are many...

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MBA Case 1. In terms of age there are many things Ben needs to take into consideration before making his decision: a. Scenario 1 (Staying with his current Job) i. Is a promotion to Investment Banker possible? ii. How long would it take Ben to receive such a promotion? iii. At what age could Ben retire and how does this correspond with his retirement goal? b. Scenario 2 (Attending Wilton University/Ritter) i. Is the MBA worth 2 years of his life? ii. Would Ben have to start at another position and initially be promoted to Investment Banker? iii. If so, how long and how likely is this promotion? iv. How does this choice affect Ben’s retirement goals? c. Scenario 3 (Attending Mount Perry College/Bradely) i. Is the MBA worth 1 year of his life? ii. Would Ben have to start at another position and initially be promoted to Investment Banker? How does this compare with the MBA from Ritter? iii. If so, how long and how likely is this promotion? iv. At what age could Ben retire and how does this correspond with his retirement goal? How does this compare with the MBA from Bradely? 2. Ben should consider quantitative as well as qualitative factors when making his decision. The qualitative cost/benefit analysis is often understated in a decision making process because the costs and benefits are not physically apparent. Some of the many qualitative factors Ben should consider are: a. The presence of a promotion? b. The difference in prestige between the two MBA programs? c. The likelihood of job placement after MBA completion? d. The location of the Investment Banker position?
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e. Extended work hours? 3. From a purely financial standpoint Ben’s best option would be to attend Ritter and obtain his MBA. My projected numbers and analysis is as follows:
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Dewey and Louis Annual Salary $ 50,000 Growth Rate 3% Time 35 years Tax Rate 26% FV Ending Salary $ 140,693 Lost Income Ritter $ 104,545 Lost Income Bradely $ 51,500 Net Income Ending Salary $ 104,113 MBA at Ritter PostGrad Starting Salary $ 95,000 Signing Bonus $ 15,000 Growth Rate 4% FV Ending Salary $ 346,596 Time 33 years Tax Rate 31%
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MBA Case - MBA Case 1. In terms of age there are many...

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