Created by nabilquadri

Investigating the Value of an MBA Education using NPV Decision Model

This collection consists of 3 files: 1. A slide deck in which the authors discuss their attempt at building a Net Present Value based Excel model that can be used to help potential MBA candidates assess the financial prudence of their decision to go for an MBA (as opposed to continuing on their present career paths). 2. An Excel 2010 compatible NPV based decision model that can be used by potential MBA candidates (for US B-schools) to simply plug in their own circumstances in the form of model inputs to get a quantitative financial estimate of the value of doing an MBA vs. not doing it. The model takes into consideration various real-world parameters involved in the decision process (including constant and variable salary growth trends, loan rates and types, and which B-school the candidate is targeting) and supports plugging in data from various external sources in the given templates. 3. The sample data and charts used by the authors in their study of this method. The loan programs and US B-schools selected by them and the calculations performed by them are listed here. Please go through the slide deck first before attempting to use the Excel model for academic or practical purposes. This study was conducted in Summer 2011 by Ashwin Shah, Mehnaz Alam and Nabil Quadri as part of their mandatory mid-term work for UCLA Extension course # W5491(Math for Finance X410.21).