Wednesday, March 07, 2007

Weakness 3: Financing

Ok INSEAD is "expensive" at €45,000.
Not only that, to fully account for costs you should consider, for the duration of the MBA:
- rent in a Fonty House or Chateau (including a swap in Singapore), €10,000
- car in Fonty, €3,000
- ticket to Singapore €850
- travels in Asia during one period €1,500
- travels in Europe 4 periods €2,500
- phone -especially when friends and family call you on your mobile when you're miles away- €1,500
- food €5,000 (roughly €15 per day)

And to that you add opportunity costs of foregone revenues:
- €60,000 on average

That totals to a hefty €130,000. Gosh I can't believe what I'm writing... In any case, you should definitely consider in the range of €100,000. Then again, I'm pretty poor in Finance, so if my rationale is somehow wrong, please let me know.

Now of course, the real assessment should be in terms of NPV. That is, you should evaluate the incremental cash flows post-INSEAD and substract total costs, let's say in the next 5 years. If the value is positive, INSEAD is worth it.

Then again, other factors must be taken into account. The value of the network, to me, is immense. So is the value of knowledge, long-term.

Of course, many scholarships are available. Probably more in your own country than through INSEAD.

The full list of Scholarships as of today (by the way, I've noticed that Theo, from Finance 1, finances a scholarship for Iraqis -my respects):

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