Decisions, desicions, decisions...
Life is fullof choices - do you want fries with that? or do you want to upsize your drink for 15 cents? Life is harder because of them but it adds some spice to life.
So what's my choice...it is between B-schools. I have been considering making a career boost by switching into finance. Why finance? well ihave come to realize i have a natyural talent on how to invest money; right now my portfolio 38%. I spend more time reading about investing and actually investing than i spent reading engineering stuff.
So I am basing my decision on these critireas:
| Schulich | Rotman | Stanford | Weight | |
| 1. school reputation: | 20 | 30 | 50 | 4 |
| 2. school location | 10 | 10 | 80 | 1 |
| 3. financial return | 30 | 30 | 40 | 7 |
| 4. risk | 70 | 30 | 0 | 6 |
| 5. length of program | 60 | 10 | 30 | 2 |
| 6. tuition fee | 70 | 30 | 0 | 3 |
| 7. admission requirements | 60 | 0 | 40 | 5 |
| Weighted total | 1,350 | 630 | 820 |
| Schulich | Rotman | Stanford | |
| Tuition | $29.00 | $54.00 | $151.25 |
| Opportunity Cost | $0.00 | $0.00 | $235.95 |
| 1st yr salary | $73.00 | $75.00 | $114.95 |
| 2nd yr salary | $84.53 | $86.84 | $133.10 |
| 3rd yr salary | $134.47 | $138.16 | $211.75 |
| 4th yr salary | $192.11 | $197.37 | $302.50 |
| 5th yr salary | $295.84 | $303.95 | $465.85 |
| Total Profit | $750.95 | $747.32 | $840.95 |
The scientifist method above is indicating that Schulich is the choice to go for, but as you know we are humans, I couldn't go for Schulich without trying my chance with Stanford, so my plan, DO my GMAT and see my score
2 comments:
My friend,
I was drawn to your blog when your partner posted a question on mine. I noticed your post about which school to go to.
One thing they will quickly teach you when you begin to study finance is the time value of money. It essentially says that a dollar today is worth more than a dollar next year is worth more than a dollar they year after that, etc.
You've failed to use it here and it changes the math you presented above.
Running an NPV calculation shows that Stanford by far nets you the most money (assuming a 10% discount rate) while Schulich has the highest IRR percentage.
I'd be happy to send you the spreadsheet I used to calculate the numbers, just email me or post a comment on my blog.
hi Jeff,
Thanks for your post in my blog about the time value of money.
I ignored the time value of money for a lot of reasons, mainly because I am comparing salaries in 2 different countries with different currencies, cost of living and inflation rates.
Therefore I ignored the value of money to simplify my analysis (i should have stated the assumption). It is true that Stanford would outwin Schulich but remember that was one of many weighted factors I considered.
As for my plan now, is to study for the GMAT till the end of the summer, take the test, and see what score i get. If it is 700+ then I'll apply to Stanford because even though I just have a 3.0 CGPA, I do have great leadership experience which I know they value a lot.
Finally, I really enjoyed your reply to my blog. I read some of your posts and they are entertaining. Keep in touch.
Regards,
EvolvedHomoSapien
p.s. can you email me the spreadsheet at iyadatuan [at] hotmail [dot] com ?
http://meantimebetweenfailure.blogspot.com/
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