Suppose you currently earn $30,000 a year. You are considering a job that will increase your lifetime earnings by $300,000 but that requires an MBA. The job will mean also attending business school for two years at an annual cost of $25,000. You already have a bachelor’s degree, for which you spent $80,000 in tuition and books. Which of the above information is relevant to your decision whether to take the job?

Question

Suppose you currently earn $30,000 a year. You are considering a job that will increase your lifetime earnings by $300,000 but that requires an MBA. The job will mean also attending business school for two years at an annual cost of $25,000. You already have a bachelor’s degree, for which you spent $80,000 in tuition and books. Which of the above information is relevant to your decision whether to take the job?

Answer 1

To determine whether to take the job or not, it is important to consider the relevant information given. In this case, the following information is relevant to your decision:

1. Current earnings: Your current salary of $30,000 per year is important as it serves as a baseline for comparing the potential increase in lifetime earnings.

2. Increased lifetime earnings: The job is projected to increase your lifetime earnings by $300,000. This figure is essential in evaluating the potential financial benefit of taking the job.

3. MBA program cost: Attending business school for two years will cost $25,000 per year. This information is vital as it represents the financial investment required to pursue the additional education needed for the job.

4. Bachelor's degree cost: The previous investment of $80,000 in tuition and books for your bachelor's degree is relevant as it factors into the overall financial investment you have already made in your education.

By comparing the increase in lifetime earnings with the cost of attending business school, you can determine if the financial benefits outweigh the expenses associated with pursuing the MBA and taking the job.