Assignment Help For You!

Special Offer! Get 20-30% Off on Every Order!

Posted: September 6th, 2023

Assignment #1 – MBA Choices in Finance

Assignment #1 – MBA Choices in Finance
75 Points – two page paper
David Jetter graduated from college six years ago with a finance undergraduate degree. Although he
is satisfied with his current job, his goal is to become an investment banker. He feels that an MBA
degree would allow him to achieve his goal. After examining schools, he has narrowed his choice to
either Prentice University or Mount Alliance College. Although internships are encouraged by both
schools, to get class credit for the internship, no salary can be paid. Other than internships, neither
school will allow its students to work while enrolled in its MBA program.
David currently works at the money management firm of Dewey and Louis. His annual salary at
the firm is $50,000 per year, and his salary expected to increase at 3 % per year until retirement.
He is currently 28 years old and expects to work for 40 more years. His current job includes a fully
paid health insurance plan, and his current average tax rate is 26 %. David has savings account
with enough money to cover the entire cost of his MBA program.
The Ritt College of Business at Prentice University is one of the top MBA programs in the country. The
MBA degree requires two years of full time enrollment at the university. The annual tuition is
$65,000, payable at the beginning of each school year. Books and other supplies are estimated to
cost $3000 per year. David expects that after graduation from Prentice, he will receive a job offer for
about $110,000 per year, with a $20,000 signing bonus. The salary at this job will increase at 4
%per year. Because of the higher salary, his average income tax rate will increase to 31 %. The
Bradel School of Business at Mount Alliance College began its MBA program 16 years ago. The
Bradel School is smaller and less well known than the Ritt College. Bradel offers an accelerated,
one – year program, with a tuition cost of $80,000 to be paid upon matriculation. Books and
other supplies for the program are expected to cost $4,500. David thinks that he will receive an
offer of $92,000 per year upon the graduation, with an $18,000 signing bonus. The salary at this
job will increase at 3.5 % per year. His average tax rate at this level of income will be 29 %.
Both schools offer a health insurance plan that will cost $3,000 per year, payable at the beginning research paper help
of the year. David also estimates that room and board expenses will cost $2,000 more per year at
both schools than his current expenses, payable at the beginning of each year. The appropriate
discount rate is 6.5 percent.
1. How does David’s age affect his decision to get an MBA? Explain why?
2. What other, perhaps non- quantifiable factors affect David’s decision to get an MBA? Explain in
detail.
3. Assuming all salaries are paid at the end of each year, what is the best option for David –
from a strictly financial standpoint? Explain why in detail with calculations.
4. David believes that the appropriate analysis is to calculate the future value of each option.
How would you evaluate this statement? So what is the future value of each option?
5. What initial salary would David need to receive to make him indifferent between attending
Prentice University and staying in his current position?
Explain in detail with calculations.
Students will be graded on their ability to cite examples from the text or websites (except
Wikipedia). Students are to follow the guidelines for two page papers (which means all papers
will have three sections: Introduction, Analysis and Conclusion). Place the answers to the
questions in the analysis (you can number them which would help the instructor grade it) and
make certain you have all the details for the calculations so the instructor can follow your
thoughts. All papers are to use APA standards and have at least three citations.
You must upload your file to Blackboard under Week2 Assignments. Go to the Assignment, scroll
down to “Attach Local File” and click Browse to select YOUR file, then hit SUBMIT.
Evaluation Criteria for: Papers
Elements of Paper–
WD Dev NSW
“A” 75 to 67.5 Points “B” 67.4 to 60 Points “C or lower”
Individual
59 to 52.5 Points or Assignments 1, and
2, 75 points each lower
Introduction (10%) Provides an interesting Provides a somewhat clear Provides no clear
introduction to the work. introduction to the work. direction for the paper.
Clearly states the purpose Somewhat explains the Does not explain the
of the work. three to five main points three to five main points
of analysis of analysis to follow.
Analysis (50%) Clearly and fully states the Somewhat describes the Provides no real clarity or
problem and the problem and the recommendation. Does
recommendation. Makes recommendation. Makes not make a clear
a clear recommendation an unclear recommendation or show
for the future. Connects recommendation. (Or may how this connects to the
to concepts presented in leave one or two of these research, text.
the texts and class out). And somewhat
discussion. connects this to the
research, and the texts.
Conclusion (20%) Connects to the Brings in new ideas that Brings in new ideas that
introduction in an are not highlighted in the are not highlighted in the
interesting way. Is short paper. Somewhat paper. Does not connect
and encompasses all of connects with the with the introduction and
the main points in the introduction and the analysis sections of the
paper. analysis sections of the paper.
paper.
Grammar, Speech Clearly uses proper Has more than three Has more than four errors
Patterns, grammar, APA for in text errors in APA, grammar in APA, grammar and or
Punctuation and citations and for all and or punctuation. punctuation.
APA (20%) references. The paper is
interesting and easy to
read.
N S W = Needs Significant Work D = Developing WD = Well Developed

________________________________________
Sample Assignment Writing, Answer Guide

David Jetter, who graduated from college six years ago with a finance undergraduate degree, wants to become an investment banker. He is considering two schools, Prentice University and Mount Alliance College, for his MBA degree. The schools differ in tuition, program length, and reputation, but both offer health insurance plans. David currently works at Dewey and Louis, with an annual salary of $50,000 per year, and his salary is expected to increase at 3% per year until retirement. David has savings account to cover the entire cost of his MBA program.

Analysis:

How does David’s age affect his decision to get an MBA?
David’s age affects his decision to get an MBA in several ways. Firstly, David is 28 years old, which means that he has already been working for a few years and has some work experience. This work experience may make him more competitive when applying for an MBA program, as he will have some practical knowledge and skills to bring to the classroom. Secondly, David is still relatively young, which means that he has plenty of time to reap the benefits of an MBA degree, such as increased job opportunities, higher salaries, and improved networking. Finally, David is likely to have fewer financial obligations than someone who is older, such as a mortgage or children, which may make it easier for him to commit to a full-time MBA program.

What other, perhaps non-quantifiable factors affect David’s decision to get an MBA?
Besides financial considerations, other non-quantifiable factors that may influence David’s decision to get an MBA include:

a) Reputation and networking opportunities of the business school: Both Prentice University and Mount Alliance College have different reputations, and the MBA program he chooses will have different networking opportunities, which will impact David’s future career prospects.

b) Curriculum: The MBA curriculum at each school is different, and David may prefer one over the other based on his interests, goals, and previous coursework.

c) Lifestyle: David’s decision to pursue an MBA will affect his lifestyle, as he will have to devote a significant amount of time to his studies, internships, and networking events.

d) Personal fulfillment: David may simply enjoy learning and want to challenge himself intellectually, regardless of the financial or career benefits of obtaining an MBA.

Assuming all salaries are paid at the end of each year, what is the best option for David – from a strictly financial standpoint?
To determine the best option for David from a strictly financial standpoint, we need to calculate the present value of each option and then compare them. The present value of both options can be calculated using the following formula:

PV = CF1/(1+r)^1 + CF2/(1+r)^2 +…+ CFn/(1+r)^n

Where PV is the present value, CF is the cash flow, r is the discount rate, and n is the number of periods.

For Prentice University:

PV = -65,000/(1+0.065)^1 – 65,000/(1+0.065)^2 – 11,000/(1+0.065)^2 – 3,000/(1+0.065)^1 – 2,000/(1+0.065)^1 – 2,000/(1+0.065)^2 – 2,000/(1+0.065)^3 + 130,000/(0.065-0.04)/(1+0.065)^2
PV = $82,013.48

For Mount Alliance College:

PV = -80,000/(1+0.065)^1 – 4,500/(1+0.065)^1 – 3,000/(1+0.065)^1

Tags: , , , , , , , , , , ,

Order for this Paper or Similar Assignment Writing Help

Fill a form in 3 easy steps - less than 5 mins.

Why choose our Study Bay Services?

Like every student, Focusing on achieving the best grades is our main goal

Top Essay Writers

We have carefully cultivated a team of exceptional academic writers, each with specialized expertise in particular subject areas and a proven track record of research writing excellence. Our writers undergo rigorous screening and evaluation to ensure they hold relevant advanced degrees and demonstrate mastery of English grammar, citation style, and research methodology. Recent projects completed by our writers include research papers on topics such as sustainable energy policy, cognitive behavioral therapy, and molecular genetics.

Student-Based Prices

We prioritize attracting highly skilled writers through competitive pay and strive to offer the most cost-effective services for students. References from recent years include surveys of customer satisfaction with online writing services conducted by the American Customer Satisfaction Index between 2018 to 2022, demonstrating our commitment to balancing affordable costs with high standards of work through positive reviews and retention of expert writers.

100% Plagiarism-Free

We guarantee 100% original and plagiarism-free final work through a thorough scanning of every draft copy using advanced plagiarism detection software before release, ensuring authentic and high-quality content for our valued customers. To note, we also do not generate assignment content with AI tool, thus you a guaranteed 0% similarity index for your final research paper.

How it works

When you decide to place an order with ap.studybay, here is what happens:

Complete the Order Form

You will complete our order form, filling in all of the fields and giving us as much detail as possible.

Assignment of Writer

We analyze your order and match it with a writer who has the unique qualifications to complete it, and he begins from scratch.

Order in Production and Delivered

You and,the support and your writer communicate directly during the process, and, once you receive the final draft, you either approve it or ask for revisions.

Giving us Feedback (and other options)

We want to know how your experience went. You can read other clients’ testimonials too. And among many options, you can choose a favorite writer.