Mr A has just graduated from the univesity with BBA and must decide whether to start working now or to get a MBA degree .In either case , he wants to get retired 20 years from now.A MBA requires expenditure of Rs. 60000 per year for each of next 2 years and he will start working immediately after getting a MBA degree.Discount rate for cash flows is 7%pa.Cash inflows occuring at the end of year and cash outflow occuring at the beginning of the year .If he goes work for now , he can expect a salary of Rs 50000 per year for each of next 20 years.If he gets a MBA degree ,his salary will be Rs 100000 per year .What is Net present value of his decision if he decides to do a MBA ?
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