How to Calculate the NPV of an MBA program

In order to decide whether it is worth undertaking an MBA (or other) program, it is necessary to compare the present value of the cost of undertaking the MBA program, including the loss of earnings, with the present value of the increase in earnings as a result of taking the program.

As the increase in earnings is represented by a series of periodic payments at a compounding discount rate, the increase can be regarded as an annuity, and its present value can be calculated using the present value of an annuity formula.

Last modified March 23rd, 2023 by Team
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