Earning an MBA in any field is the most fulfilling and rewarding individual investment that a person can do for him or herself. There are several qualitative and quantifiable factors that an individual takes into account when considering this investment. Once an individual has an insight of the investment, they will be able to conduct a realistic return-on-investment calculation for a DPS program in a certain field. When determining the return-on-investment for a particular DPS program, one considers the cost of investment and the value of revenue generated. Knowing how much the DPS program in a particular field is going to cost is important to determine the return-on-investment. Most tuition rates are found on the website of every university; however, the figures do not include the definite cost of graduate-level business education. There are the hidden costs (miscellaneous costs) that are not included in the rates depicted in the most website of schools. DPS programs always offer progressive salary increments. However, it is important for individuals to consider what they would earn if they stayed before deciding on either to pursue one of the DPS programs or not. Nevertheless, some institutions have an online DPS program options which permit individuals to pursue one of the DPS programs and relinquish certain opportunity cost that comes with the DPS programs. This paper seeks to evaluate the return-on-investments when a person seeks to pursue Business research from DPS program offered by PACE University.
The expected return-on-investment if this program is Pursued
Every person comprehends that earning DPS in Business Research from PACE university will boost someone’s earning power. Since I aim to become an assistant professor in business research in New York, it is important to determine the rate of return if I will pursue this venture. According to (aacsb.edu, 2017) salaries of DPS Business related field vary across different states. Willis, Williams, Gebke, & Bergus, (2018) depicts that the variance in the economy in the different state is the reason behind why the salaries of assistant professors vary across states. According to website Glassdoor (2014), the assistant professor in any business field earns an average of $91,078 in a year. However, the website shows the salary distribution of assistant professor in the business-related field. According to the website, an assistant professor should not be paid below $52,000 in a year. The website depicts $52,000 is the salary of a poorly paid assistant professor in New York. (Glassdoor, 2014). Nevertheless, the website highlights the maximum pay for an assistant professor in New York. The website depicts that the best-paid assistant professor earns $129,000 in a year. The website suggests that majority of assistant professors are paid between $91,078 (average salary) to $129,000 in a year Glassdoor (2014). According to Willis, Williams, Gebke, & Bergus, (2018), factors that cause variance in pay for assistant professors include years of practice and institutions that an individual teacher. Salary of an assistant professor varies with years; a new assistant professor will earn the average salary which is $91,078 but with each year that passes their salaries increases. However, it is important to note that increment in salary depends on the contract that the assistant professor signed. The contract may stipulate that for each year the salary of the assistant professor increases by a certain percentage or the contract may specify that increment of salary will be discussed when the signed contract expires ( Willis, Williams, Gebke, & Bergus, 2018) . Also, universities and colleges determine the salary that assistant professors earn. Established Universities such as PACE University have financial muscles to pay their professors and assistant professor good salaries compared to universities that are upcoming which have less financial muscle.
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In our case rate of return is calculated by Return-on-investment is calculated by ROI= (Investment Revenue- Investment Cost)/ Investment cost (El-Halwagi, 2017).
| Year | Tuition | Technology Fee | General Institutional Fee | Total Tuition and Fees |
| Year 1 | $23,490 | $210 | $598 | $24,298 |
| Year 2 | $19,575 | $165 | $520 | $20,260 |
| Year 3 | $15,660 | $120 | $442 | $16,222 |
| Year 4 | $7,830 | $120 | $310 | $8,260 |
| Year 5 | $7,830 | $120 | $310 | $8,260 |
| Total | $74,385 | $735 | $2,180 | $77,300 |
Source: https://www.pace.edu/lubin/lubin-academic-programs/executive-education/executive-doctoral-program/admissions-process/tuition-and-fees
Total Investment revenue $91,078
Investment cost $77,300
($91,078- $77,300)/ $77,300
Return-on-Investment = 0.178 X 100
17.8%
From the calculations, my return on investment is 17.8%. It implies that I will make $0.178 for every dollar that I will make in one year after getting the job (El-Halwagi, 2017). This investment is efficient because I would recover all the money, I spent over a five-year period pursuing DPS program in Business Research in just a year, and I will make a profit because my investment increased 0.178 times.
Time Required to Recover the Investment with After-Tax Dollars
| Tax Bracket | Tax Rate |
|---|---|
| $0.00+ | 4% |
| $8,500.00+ | 4.5% |
| $11,700.00+ | 5.25% |
| $13,900.00+ | 5.9% |
| $21,400.00+ | 6.45% |
| $80,650.00+ | 6.65% |
| $215,400.00+ | 6.85% |
| $1,077,550.00+ | 8.82% |
https://www.tax-brackets.org/newyorktaxtable
The tax rate of $91,078 is 6.65% according to the above table
$91,078 X 6.65%=6.056.69
$91,078 - 6.056.69= 85,021.31
Take home salary = 7,0850.11
$77,300/7,0850.11= 11 month
Borrowing to finance this program will affect the result in several ways. My expected return-on-investment will decrease since I will have to pay interest on the money that I borrow ( Krishnan & Wang, 2018) . Also, the required time to recover investment after-tax will increase since I have to pay the money borrowed and the interest rates.
The employment prospects for the course selected is high, and therefore, I would pursue the course. Presently, most universities in New York have inadequate assistant professors making the position lucrative. Also, the position has other incentives; a person can further their studies in the universities they teach at a subsidized rate making the course more appealing.
References
aacsb.edu. (2017). 2017-18 Staff Compensation & Demographics Survey
https://www.aacsb.edu/-/media/aacsb/publications/data-reports/global-salary-survey/staff%20compensation%20and%20demographics%20report%202017-18%20executive%20summary.ashx?la=en
El-Halwagi, M. M. (2017). A return on investment metric for incorporating sustainability in process integration and improvement projects. Clean Technologies and Environmental Policy, 19(2), 611-617.
Glassdoor. (2014). Assistant Professor - Business Salaries in New York State
https://www.glassdoor.com/Salaries/new-york-state-assistant-professor-business-salary-SRCH_IL.0,14_IS428_KO15,43.htm
Krishnan, K., & Wang, P. (2018). The Cost of Financing Education: Can Student Debt Hinder Entrepreneurship? Management Science .
Mohammed, S., Ahmed Azumah, A., & Tetteh, R. (2017). An Empirical study of the Role of Demographics in Job Satisfaction of Sunyani Technical University staff.
Willis, D., Williams, J., Gebke, K., & Bergus, G. (2018). Satisfaction, Motivation, and Retention in Academic Faculty Incentive Compensation Systems: A CERA Survey. Family medicine , 50 (2), 113-122.
