Investment analysis
Investment analysis is the practice of comparing the costs and benefits of an investment to determine whether or not it is profitable. This study considers KC as an investment from the perspectives of students, taxpayers, and society.
Student perspective Students invest their own money and time in
For every dollar students spend on their education at KC, students will receive an average of $4.30 in return over the course of their working lives.
their education to pay for tuition, books, and supplies. While some students were employed while attending the college, students overall forewent earnings that they would have generated had they been in full employment instead of learning. Summing these direct outlays and opportunity costs yields a total of $15.3 million in present value student costs. In return, students will receive a present value of $66 million in increased earnings over their working lives. This translates to a return of $4.30 in higher future earnings for every dollar that students invest in their education at KC. The corresponding annual rate of return is 16.1%.
Taxpayer perspective Taxpayers will receive an estimated present value of $24.6 million in added tax revenue stemming from the students’ higher lifetime earnings and the increased output of businesses. Savings to the
Executive Summary
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