Asked by Avery Burton on Jun 08, 2024
Verified
A newspaper article claims that more students are choosing 1-year M.B.A.programs instead of 2-year programs because the 2-year programs no longer guarantee a well-paid job.If the length of your M.B.A.program doesn't matter to employers, and you take a job right after completing your M.B.A., the present value of your lifetime earnings is the same whether you take a 1-year or 2-year program.
Present Value
The current worth of a future sum of money or stream of cash flows, given a specified rate of return.
M.B.A. Programs
Master of Business Administration programs, offering advanced education in business management and operations.
- Absorb the principle of the present value of future cash flows.
- Comprehend the intertemporal budget constraint and its implications for consumption over time.
Verified Answer
YK
Yakup Kaan SaglamJun 11, 2024
Final Answer :
False
Explanation :
The present value of lifetime earnings could differ between 1-year and 2-year M.B.A. programs because starting your career one year earlier with a 1-year program can lead to an additional year of earnings, potentially affecting the present value calculation. Additionally, the cost of an extra year of education and the opportunity cost of not working during that time can also impact the overall financial outcome.
Learning Objectives
- Absorb the principle of the present value of future cash flows.
- Comprehend the intertemporal budget constraint and its implications for consumption over time.
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