Question: The MBA problem: You are working now with a yearly salary of 15,00,000 which is expected to grow at a rate of 8% forever.

The MBA problem: You are working now with a yearly salary of ₹ 15,00,000 which is expected to grow at a rate of 8% forever. You have 30 years until retirement. You decide to pursue a full time MBA program in a leading business school for which you must quit your job. The MBA program costs ₹ 15,00,000 each year for tuition and other fee.

Suppose your retirement age does not change even after MBA, at what minimum salary in placements is the MBA worth doing? Discounting rate is 10%.

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