Kingery Harvard Case Solution & Analysis


Natasha Kingery is a 30 years old woman and has done Bachelor of Science in computer science. She is currently working at Telephony Corporation and is delegated with a job of Tier 2 field service representative. She is currently earning $38000 per year and it is expected that this will grow at an annual rate of 3%.


Natasha has recently inherited $75,000 from her aunt, and in order to make this money useful, she invested the sum in a 10 year treasury bonds. She currently decided to utilize this fund in order to do her further studies. The main issue is that she is unable to identify and choose whether she should go for the certification course in network design, or she should go for MBA.


Following are the description of the choices available to Natasha for her further studies.

MBA Program

If she undertakes the MBA program, she would have to bear an annual cost of $25,000 for 3 years, as well as, it is expected that she would be promoted to a managerial position soon after her completion of MBA program. At the managerial position, her salary would be increased by $20,000 as well as it is expected that her differential salary would be increased by 3% each year. However, since she would be taking evening MBA program therefore,she would be able to continue with her job and would not lose any income as a result of undertaking MBA.


If she undertakes certification course, then she would have to bear a one-time cost of $5,000 for her course, and after a year she would be promoted to a Tier 3 field service representative where she would earn $10,000 more than her current salary as well as it is expected that her differential salary would be increased by 3% each year. Moreover, it is certain that certification program would not become hurdle for her in continuing with her current job and as a result, she would not lose any income due to her certification program.


A thorough calculation has been done in the exhibit with respect to the feasibility of undertaking either of the above mentioned program. The NPV calculation shows that the NPV of MBA program over the next 35 years is $412,347, whereas, the NPV of certification program is $267,262. Hence, keeping in front the calculations performed, it is recommended that she should undertake MBA program.

However, this feasibility report has been made using following assumptions.

  • She would undertake one of the aforementioned programs.
  • She would continue her job in the same company till her retirement.

The growth rate of differential salary would remain 3% for the entire tenure.................

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