slides slides

In this project, you will be computing the expected value and payback period of your MBA. 

The objective of this midterm assignment is to introduce probabilities into a monetary forecast, and get you thinking about the value of an MBA. 

Please submit your assignment as a PowerPoint presentation entitled "The Expected Value of My MBA". (PPT Title Slide = Page 1)

First, gather two statistics about getting an MBA. This can be anything - average salary of workers with MBAs vs. without MBAs, the percentage of MBA holders over time, the average cost of an MBA, etc. etc. etc. It is your choice on what statistics you gather. 

Briefly write about how each statistic applies to your decision to start an MBA programme. 50 words each (100 words total). (PPT Slide = Pages 2 & 3)

Now, gather at least six costs related to getting your MBA (e.g. flights, tuition, housing, etc. etc. etc on PPT Slide Page 4) , and estimate a low, medium, and high cost for each one. Assign a probability to each of the amounts (PPT Slide 5). Some amounts may be fixed and this is fine since you can still assign a probability. 

Next, gather future salary data - low, medium, high values - and assign a probability to each possible future salary (PPT Slide 6).

Use a spreadsheet for computing numbers and copy and paste your spreadsheet images into your PowerPoint file. 

Compute the expected cost & expected value (PPT Slide 7):

low_cost*probability + medium_cost*probability + high_cost*probability = expected cost

Compute the expected value (in terms of a yearly salary):

low_salary*probability + medium_cost*probability + high_cost*probability = expected value

Finally, figure out how long of a payback period there is before your future salary pays off your MBA expected costs. (PPT Slide 8)

Create a graph summarizing any part of the project you like. (PPT Slide 9)

Write a short summary of your main take-away (50 words max on PPT Slide 10). 

You may do this project in any currency you like.