Analysis of the Return on Investment and Economic Impact of Education

TABLE 3.2: Projected benefits and costs, student perspective

GROSS HIGHER EARNINGS TO STUDENTS (MILLIONS)

NET HIGHER EARNINGS TO STUDENTS (MILLIONS)

% ACTIVE IN WORKFORCE*

STUDENT COSTS (MILLIONS)

NET CASH FLOW (MILLIONS)

YEAR

0 1 2 3 4 5 6 7 8 9

$29.0 $30.3 $31.6 $33.0 $34.4 $35.7 $37.1 $38.5 $39.9 $41.2 $42.6 $43.9 $45.2 $46.5 $47.8 $49.0 $50.2 $51.3 $52.4 $53.5 $54.5 $55.4 $56.3 $57.1 $57.8 $58.4 $59.0 $59.5 $60.0 $60.3 $60.6 $60.7 $60.8 $60.8 $60.8 $60.6 $60.3 $60.0 $59.6 $59.1 $58.5 $57.9 $57.2 $56.4 $55.5 $53.6

6%

$1.8 $5.9 $8.5

$170.9

-$169.1

20% 27% 39% 58% 92% 92% 92% 92% 93% 93% 93% 93% 93% 93% 93% 93% 93% 93% 93% 93% 93% 93% 93% 93% 93% 92% 92% 92% 91% 91% 91% 90% 90% 89% 89% 88% 88% 87% 86% 85% 85% 84% 83% 26%

$0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0

$5.9 $8.5

$13.0 $19.8 $32.8 $34.2 $35.5 $36.9 $38.2 $39.5 $40.8 $42.1 $43.3 $44.5 $45.7 $46.8 $47.9 $48.9 $49.9 $50.8 $51.6 $52.3 $53.0 $53.6 $54.1 $54.5 $54.8 $55.0 $55.2 $55.2 $55.1 $54.9 $54.7 $54.3 $53.8 $53.3 $52.6 $51.8 $50.9 $50.0 $48.9 $47.8 $46.6 $14.3

$13.0 $19.8 $32.8 $34.2 $35.5 $36.9 $38.2 $39.5 $40.8 $42.1 $43.3 $44.5 $45.7 $46.8 $47.9 $48.9 $49.9 $50.8 $51.6 $52.3 $53.0 $53.6 $54.1 $54.5 $54.8 $55.0 $55.2 $55.2 $55.1 $54.9 $54.7 $54.3 $53.8 $53.3 $52.6 $51.8 $50.9 $50.0 $48.9 $47.8 $46.6 $14.3

10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45

7%

$3.8

$3.8

Present value

$748.7

$170.9

$577.8 16.0%

Internal rate of return

Benefit-cost ratio

4.4 8.5

Payback period (no. of years) 

* Includes the “settling-in” factors and attrition. Source: Emsi college impact model.

2 5

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