1.  

Prior to beginning work on this discussion forum, review Chapter 9: The Time Value of Money in the Foundations of Financial Management textbook.

In this discussion forum, you will determine the rate of return of your MBA degree.

Initial Response:

For this discussion forum,

• 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) and internal rate of return (IRR) of that investment. As an example, assume “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? Use both the NPV and IRR formulas in your analysis and explain your results. Be sure to show all your calculations.

Your initial response should be a minimum of 200 words. at least 2 credible resources

2. 

The CEO at your present job was quite impressed with your knowledge of the statement of cash flows from two weeks ago! This time, the CEO needs to present their quarterly budget to the CFO of your company. The CEO has a few questions on capital budgeting and wants to be aware of some of the issues and concerns when it comes to capital budgeting.

For this discussion forum, address the following questions asked by your CEO,

• First, what is the purpose of capital budgeting?
• Next, is there a process involved in capital budgeting?
• Finally, explain any pitfalls that might hinder the capital budgeting process.

When addressing the questions please be sure to be specific when addressing the question. Answers should be appropriate to the level of audience (CEO).

Your initial response should be a minimum of 200 words. At least 2 credible resources