original calculationThe MBA DecisionCurrent PositionAge28Work Life35

Current PositionSalarySigning BonusHikeTax RateHealth InsuranceMoney in Hand Educatoin Expenses50,00003%26%included in salary37,000Course DurationTution FeesBooks & Supp.Health Insur.Board & LodgeDiscount RateTotalPresent ValueRemaining Work LifeRitter College95,00015,0004%31%do65,5502120,0005,0006,00040,0006.50%171,000165,78233Bradley School78,00010,0003.50%29%do55,380175,0003,5003,00020,0006.50%101,500101,50034preset value of salarypresent value of bonuspresent value of salary Including BonusLess Edu Exp.Net Present Valuefuture valueCurrent Position728896728896728,8960728,8966605443.40756162Ritter School142472012561178,5681,264,686165,7821,098,9049958547.38654673Bradley School11472581,077,2376,2601,083,497101,500981,9978899109.12016329present value of bonus if no tax is paid on bonus and is paid on date of joiningCurrent Position7288967288967288966605443.40756162Ritter School14247201256117132251269342165,782110356110000747.1460164Bradley School11472581,077,23793901,086,627101,500985,1278927472.9851615age51 in case of ritter school and 53 in case of bradley

minimum return

by replacing 95,000 with 65110, this value becomes equal to E12

Class presentThe MBA DecisionCurrent PositionAge28Work Life35Education ExpensesPositionSalarySigning BonusSalary hikeTax RateHealth Insurance included?Money in Hand (minus tax)Course DurationTution FeesBooks & Supp.Health Insur.Board & LodgeDiscount RateTotalPresent Value - Education expenseRemaining Work LifeCurrent Position50,00003%26%yes37,000NANANANANANAWiton- Ritter College95,00015,0004%31%yes65,5502120,0005,0006,00040,0006.50%171,000165,78233Bradley School78,00010,0003.50%29%yes55,380175,0003,5003,00020,0006.50%101,500101,50034

Assuming salary paid at end of each period and tax paid on bonusPositionSalarypreset value of salarypresent value of bonuspresent value of salary Including BonusLess Edu Exp.Net Present Valuefuture valueCurrent Position728896728896728,8960728,8966605443.40756162Witon- Ritter School142472012561178,5681,264,686165,7821,098,9049958547.38654673Bradley School11472581,077,2376,2601,083,497101,500981,9978899109.12016329Assuming salary paid at end of each period and NO tax paid on bonusCurrent Position728896728896728,896.236,605,443.41Witon- Ritter School14247201256117132251269342165,7821,103,560.5710,000,747.15Bradley School11472581,077,23793901,086,627101,500985,1278927472.9851615ANSWER 1As the Ben's age increases, the NPV of the options available will decrease and the money earned in that period will give him good return @ 6.5%. So, as the age of Ben's increases the financial feasibility of doing MBA will decreases. 51 in case of Witon- Ritter school and 53 in case of bradley.

ANSWER 2:The other non-quantifiable factors are:- 1) The inflation and market trend can change the interest rate, which can change the viability of the calculation. Such as may be the interest rate slash down or may be the discounting rate will increase to higher percentage.2) The uncertainity of getting the job in expected company or eill get less salary as expected.ANSWER 5:Annuity factor for present position19.7Calculated using annuity growth formulaSalary (after tax) Ben needs to receive now to be indifferent to attending Wilson56,018.30

Q3 and Q4 - Assuming all salaries are paid at end of year, Ritter works as the best option.

Q6Question 6The MBA DecisionCurrent PositionAge28Work Life35Education ExpensePositionSalarySigning BonusHikeTax RateHealth InsuranceMoney in Hand Course DurationTution FeesBooks & Supp.Health Insur.Board & LodgeDiscount RateTotalPresent ValueRemaining Work Lifeinterest rateCurrent Position50,00003%26%included in salary37,000Ritter College95,00015,0004%31%do65,5502120,0005,0006,00040,0006.50%171,000165,782335.4%Bradley School78,00010,0003.50%29%do55,380175,0003,5003,00020,0006.50%101,500101,500345.4%PV of salarypresent value of bonuspresent value of salary Including Bonustotal interest paid on loanpresent value of education loanLess Edu Exp.Net Present Valuenet present value after payin interestCurrent Position728896.229973222728,8960728,896728,896Ritter School1424719.724955941256117.370853178568.23810016081,264,68614,100163,195165,7821,098,904935,709Bradley School1147257.876618071077237.442833876259.78090766821,083,4975,481100,452101,500981,997881,546