am crammin for my Managerial Economics midterm tomorrow, and this question (with its model answer mind u) epitomizes sarcasm. Seriously, this is the best they can do for Grad students?
"Individuals who choose to attend business school have made a decision to invest in human capital".
Use terminology of Net Present Value Analysis to explain why ure attending b-school.
The model answer given is:
Net Present Value of attending school is the present value of the benefits derived from attending school (including the stream of higher earnings and value to you of the work environment and prestige that higher ed provides), minus the opportunity cost associated with attending b-school.The opportunity cost of attending b-school is generally greater than the cost of books and tuition.
I'll say! Thanks for stating the obvious. I didnt realize that my b-school was costing me more than books and tuition! The whole expression "the opportunity cost of attending b-school!" That is, in my humble opinion, the understatement of the year! la2 bgad, gebt el tayha!
Grad students invest time.. valuable time. Time that cannot be equated to some one-digit interest rate that they could have earned in a bank instead.
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