Week 3 – Discussion Forum 1

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

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) of that investment. As an example, let us say “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? Be sure to show all your calculations.

Week 3 – Discussion Forum 2

Prior to beginning work on this discussion forum, read Chapter 11: Cost of Capital in the Foundations of Financial Management textbook, watch the Week 3 Discussion video with Dr. Kevin Kuznia, DBA, CSSBB, PMP, and review the WACC and Cost of Capital Allocation (Links to an external site.) interactive.

Initial Response:

For this discussion forum, you will provide a real-world example of how capital allocation was successfully (or unsuccessfully) applied. In your response, please address the following:

• First, use the University of Arizona Global Campus Library to research an article on capital allocation; many articles are available in the library.
• Select and review the article.
• For your initial post, summarize the article and provide a connection between the article’s concepts and readings for the week. Do any of the concepts in your article agree or disagree with the text?
• Additionally, based on the findings in your article, explain how the Weighted Average of Cost Capital (WACC) influences investment decisions.

Your initial response should be a minimum of 300 words for each discussion. Graduate school students learn to assess the perspectives of several scholars. Support your response with at least one scholarly and/or credible resource in addition to the text.