Jenny Jenks has researched the financial pros and cons of entering into a? 1-year MBA program at her state university. The tuition and needed books for a? master's program will have an upfront cost of $102,000. On? average, a person with an MBA degree earns an extra $22,000 per year? (after taxes) over a business career of 38 years. Jenny feels that her opportunity cost of capital is 5.6%.
Given her? estimates, find the net present value? (NPV) of entering this MBA program.
Are the benefits of further education worth the associated? costs?