What is the cost benefit analysis of getting your masters degree? Include the opportunity cost of pursuing the degree as well as the accounting costs like books, tuition, transportation etc. Also need to discount the future value of expected raises, promotions etc. Using data below;
| Pay | Do Nothing | ||||
| (benefit) | (cost) | (benefit) | (cost) | ||
| Current Salary | $50,000 | $40,000 | |||
| Potential Salary | $25,000 | $10,000 | |||
| Tuition | $19,800 | N/A | |||
| Books/Admin | $2,200 | N/A | |||
| Gas/Tolls | $2,000 | N/A | |||
| Fast Food | $1,000 | N/A | |||
| Total Benefit | $40,000 | $50,000 | |||
What is the cost benefit analysis of getting your masters degree
A Masters degree will increases your lifetime earnings, with the degree like MBA degrees and MS in Engineering .Person with having master degree have most probably highest payback
Include the opportunity cost of pursuing the degree as well as the accounting costs like books, tuition, transportation etc. Also need to discount the future value of expected raises, promotions etc. Using data below;
| Pay | Do Nothing |
|||
| (benefit) | (cost) | (benefit) | (cost) | |
| Current Salary | 40000 | 20000 | ||
| Potential Salary | 80000 | 20000 | ||
| Tuition | 19800 | N/A | ||
| Books/Admin | 2200 | N/A | ||
| Gas/Tolls | 2000 | N/A | ||
| Fast Food | 1000 | N/A | ||
| Total | 40,000 | 23200 | 0 | 0 |
| Net Benefit | 16800 |
As you can see from the above table you can say that your current salary is 40,000 and if you do master degree you will get 80,000 salary which is almost double .Though you have expanses like accounting costs like books, tuition, transportation etc but all this expanses are one time and you will get life time benefit of increase in salary
