Weighted Average of Cost Capital (WACC) influences investment decisions.

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.
Your initial response should be a minimum of 200 words. 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.

Question 2 (200 words minimum)
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.

Sample Solution