Amy Austin is considering going back to school at nights. She will either get a masters degree in Accounting (her first degree is in Accounting) or an MBA She has calculated the net present value (NPV) of getting each of these degrees based upon the cost of each degree and the increase in salary she would get over her 20 years of remaining career

She knows that she will either stay as an accounting professional or will move into upper management She estimates that her probability of staying an accounting professional is 55% The NPV of an MBA is 50,000 as an accounting professional and 350,000 in upper management The NPV of the masters in Accounting degree is 180,000 as an accounting professional and 280,000 in upper management.

 

Which degree should she pursue ? Perform a decision analysis (both graphically and in Excel) and determine.