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Please carefully read instructions attached and have it sent by 3/16 .
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ACC 502- Managerial Case
Instructions:
Please carefully review the case, assumptions and requirements given below. I want you to prepare a
typed report in Word that will be submitted on D2L. The calculations for requirement #1, should
include the present value factor that you used and the answers to #2 and #3, should provide the detail
of your calculations.
Please type in double space and in complete sentences the answers to required questions #4, #5 and
#6.
The case is worth 30 points and no late work will be accepted. Grading is determined based on the
accuracy and completeness of each response. Please refer to Chapter 13 for guidance on opportunity
costs and Chapter 16 for present value factors and guidance for the payback period.
Case:
Your graduate program at Roosevelt University will cost you 93,960 and let’s assume you will be finished
in 2 years. The tuition cost should include books and be net of any scholarships you received.
With your graduate degree, you expect to increase your employment opportunities, provide better job
security and increase your salary.
To review the net benefits of your education, compare your education cost with the present value of
your salary increases.
Case Assumptions:
1.
2.
You will work full time for the next 25 years.
Your salary will be $25,000 more a year because of your graduate degree.
Required: Each response is worth 5 points.
1.
2.
3.
4.
5.
6.
Determine the present value of your increased salary benefits. Assume an interest rate of 8%.
Calculate the net cost of your education. (no need to present value it, but do subtract
scholarships) Scholarship is $14,220 total
Determine the payback period of your educational cost.
What factors would change the present value of the salary benefits and the payback period.
What were the opportunity cost or costs of pursuing the graduate education program at
Roosevelt?
What do you feel are some of the qualitative benefits of your degree at Roosevelt University?
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