The authors cite a recent study of MBA programs that compares pre-MBA salaries with post-MBA salaries. For some of the highest ranked schools, the salary difference was roughly $100,000 per year, and the difference was roughly $60,000 for some schools ranked near the bottom of the top 20. Is it possible that the financial returns from an MBA earned at a lower ranked school may actually exceed the returns from a top ranked school?

Question

Quizplus · Accepted Answer

The financial returns of an MBA earned at a lower ranked school may exceed the returns from a top ranked school if the tuition is low enough. The net present value of the degree will be higher if the tuition is lower, making it possible for a lower ranked school to provide higher financial gains. However, this does not depend on the discount rate but rather the cost of the degree. Therefore, option B is incorrect. Option C is too general of a statement and ignores the fact that some lower ranked schools may provide higher financial gains. There is enough information provided in the passage to answer the question, making option D incorrect as well.

The Authors Cite a Recent Study of MBA Programs That