Assumption 1:

Assumption 2:
Assumption 3:
Assumption 4:
Assumption 5:
Assumption 6:

Case 1
Case 2

Assumptions
Discount Rate =
Growth in Income after MBA =
Growth in Income before MBA =
Expected Annual Salary without MBA =
Expected Annual Salary with MBA =
Retirement Age

6%
12%
9%
240000
450000
60

With MBA
Without MBA

NPV
48941232
17988273

Difference in MBA

30952959

Growth in NPV due to MBA

172%

Age

PRESENT

22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60

Case 1: With MBA

Investment in Oppoutunity
Education
Loss
Income
-121660.9
-240000
-121660.9
-261600
450000
504000
564480
632217.6
708083.7
793053.8
888220.2
994806.6
1114183
1247885
1397632
1565347
1753189
1963572
2199201
2463105
2758677
3089718
3460485
3875743
4340832
4861732
5445140
6098556
6830383
7650029
8568032
9596196
10747740
12037469
13481965
15099801
16911777
18941190
21214133
23759829
0
Total

Case 2: Wit
NPV
-406362.1872
-406256.554
450000
475471.6981
502385.1905
530822.088
560868.6213
592615.9018
626160.1981
661603.2282
699052.4675
738621.4751
780430.2378
824605.5343
871281.3193
920599.1298
972708.5145
1027767.487
1085943.005
1147411.477
1212359.297
1280983.408
1353491.903
1430104.652
1511053.972
1596585.329
1686958.083
1782446.276
1883339.462
1989943.582
2102581.898
2221595.968
2347346.683
2480215.363
2620604.912
2768941.039
2925673.551
3091277.714
0
48941232

Age

PRESENT

22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60

Case 2: Without MBA

Investment in Oppoutunity
Education
Loss
Income
0
0
240000
0
0
261600
285144
310807
338780
369270
402504
438729
478215
521254
568167
619302
675040
735793
802014
874196
952873
1038632
1132109
1233999
1345059
1466114
1598064
1741890
1898660
2069539
2255798
2458820
2680113
2921324
3184243
3470825
3783199
4123687
4494819
4899352
5340294
5820920
0
Total

NPV
269664
277296
285144
293214.1
301512.6
310046
318820.9
327844.1
337122.7
346663.9
356475.2
366564.1
376938.6
387606.6
398576.6
409857.1
421456.8
433384.9
445650.5
458263.2
471232.9
484569.7
498283.9
512386.3
526887.8
541799.7
557133.7
572901.6
589115.8
605788.9
622933.9
640564.1
658693.3
677335.5
696505.4
716217.8
736488.1
757332.1
0
17988273