Week 2&3 Discussion 1 & 2
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BUS629W3D1.docxWeek 3 - Discussion Forum 1
Required Resources
Text
Block, S. B., Hirt, G. A., & Danielsen, B. R. (2019). Foundations of financial management (17th ed.). Retrieved from https://www.vitalsource.com
· Chapter 9: The Time Value of Money
· Chapter 11: Cost of Capital
Book
Thorndike, W., N., Jr. (2012). The outsiders: Eight unconventional CEOs and their radically rational blueprint for success . Retrieved from https://www.vitalsource.com
· This book discusses what makes an effective CEO and provides examples of high-profile managers in the business industry, and it will assist you in the Week 3 Connect Homework Problems assignment this week.
Recommended Resources
Text
Block, S. B., Hirt, G. A., & Danielsen, B. R. (2019). Foundations of financial management (17th ed.). Retrieved from https://www.vitalsource.com
· Chapter 10: Valuation and Rates of Return
Articles
Carmichael, T., & Sutherland, M. (2005). A holistic framework for the perceived return on investment in an MBA. South African Journal of Business Management, 36(2), 57–70. Retrieved from https://sajbm.org/index.php/sajbm
· The full-text version of this article is available through the EBSCOhost database in the Ashford University Library. This article provides information about the potential for a return on investment on an MBA degree, and it may assist you in your Net Present Value of University Costs Scenario discussion forum this week.
Cooper, W. D., Morgan, R. G., Redman, A., & Smith, M. (2001). Capital budgeting models: Theory vs. practice. Business Forum, 26(1, 2), 15–19. Retrieved from http://www.calstatela.edu/business/business-forum
· The full-text version of this article is available through the EBSCOhost database in the Ashford University Library. This article provides information about how capital project investment decisions are made and may assist you in your Weighted Average Cost of Capital and Cost of Capital Allocation in the Real-World Role-Play discussion forums this week.
Grinyer, J. R., Sinclair, C. D, & Ibrahim, D. N. (1999). Management objectives in capital budgeting. Financial Practice and Education, 9(2), 12–22. Retrieved from https://www.fma.org/jacf
· The full-text version of this article is available through the EBSCOhost database in the Ashford University Library. This article provides information about how capital project investment decisions are made, and it may assist you in your Weighted Average Cost of Capital and Cost of Capital Allocation in the Real-World Role-Play discussion forum this week.
Van Auken, S., Wells, L. G., & Chrysler, E. (2005). The relative value of skills, knowledge, and teaching methods in explaining master of business administration (MBA) program return on investment. Journal of Education for Business, 81(1), 41–46. https://doi.org/10.3200/joeb.81.1.41-46
· The full-text version of this article is available through the EBSCOhost database in the Ashford University Library. This article provides information about the potential for a return on investment in an MBA degree, and it may assist you in your Net Present Value of University Costs Scenario discussion forum this week.
Instruction
Prior to beginning work on this discussion forum, read Chapter 9, “The Time Value of Money,” in the Foundations of Financial Management
In this discussion forum, you will determine the rate of return of your MBA degree.
The first step is to calculate the cost of your MBA. If your employer sponsors the cost of your education, you can either use what you would have paid or use opportunity costs as a basis.
After you determine your initial investment, determine the net present value (NPV) of that investment. As an example, let us say “Joe” will be changing jobs when he achieves his MBA and will make 10% more annually as a result. Joe plans to work for 20 more years. His MBA cost was $50,000.
Do you forecast that pursuing an MBA is worth the financial investment? Be sure to show all your calculations.
Your initial response should be a minimum of 200 words. Graduate school students learn to assess the perspectives of several scholars. Support your response with at least one scholarly and/or credible resource in addition to the text.
