The Economic Value of WTAMU Main Report

TABLE 3.2: PROJECTED BENEFITS AND COSTS, STUDENT PERSPECTIVE
1 2 3 4 5 6
Year
Gross higher
earnings to
students
(millions)
% active in
workforce*
Net higher
earnings to
students
(millions)
Student costs
(millions)
Net cash flow
(millions)
0 $22.4 9% $2.1 $146.8 -$144.7
1 $23.9 16% $3.9 $1.7 $2.1
2 $25.5 26% $6.6 $1.7 $4.9
3 $27.2 43% $11.7 $1.7 $10.0
4 $28.9 68% $19.5 $1.7 $17.8
5 $30.6 96% $29.4 $1.7 $27.7
6 $32.3 96% $31.1 $1.7 $29.4
7 $34.1 96% $32.8 $1.7 $31.0
8 $35.9 96% $34.5 $1.7 $32.7
9 $37.6 96% $36.2 $1.7 $34.4
10 $39.4 96% $37.9 $1.7 $36.1
11 $41.1 96% $39.5 $1.7 $37.8
12 $42.9 96% $41.1 $1.7 $39.4
13 $44.6 96% $42.7 $1.7 $41.0
14 $46.3 96% $44.3 $1.7 $42.6
15 $47.9 96% $45.8 $1.7 $44.0
16 $49.4 96% $47.2 $1.7 $45.5
17 $50.9 95% $48.6 $1.7 $46.8
18 $52.4 95% $49.8 $1.7 $48.1
19 $53.7 95% $51.0 $1.7 $49.3
20 $55.0 95% $52.1 $1.7 $50.3
21 $56.2 94% $53.0 $0.0 $53.0
22 $57.2 94% $53.9 $0.0 $53.9
23 $58.2 94% $54.6 $0.0 $54.6
24 $59.1 93% $55.2 $0.0 $55.2
25 $59.8 93% $55.6 $0.0 $55.6
26 $60.4 93% $55.9 $0.0 $55.9
27 $60.9 92% $56.1 $0.0 $56.1
28 $61.3 92% $56.1 $0.0 $56.1
29 $61.5 91% $56.0 $0.0 $56.0
30 $61.6 90% $55.8 $0.0 $55.8
31 $61.6 90% $55.4 $0.0 $55.4
32 $61.4 89% $54.8 $0.0 $54.8
33 $61.2 88% $54.1 $0.0 $54.1
34 $60.8 88% $53.3 $0.0 $53.3
35 $60.2 87% $52.3 $0.0 $52.3
36 $59.6 86% $51.2 $0.0 $51.2
37 $58.8 85% $50.0 $0.0 $50.0
38 $57.9 84% $48.6 $0.0 $48.6
39 $56.9 83% $47.2 $0.0 $47.2
40 $55.8 82% $45.6 $0.0 $45.6
Present value $712.2 $169.6 $542.6
Internal rate of return Benefit-cost ratio Payback period (no. of years)
16.3% 4.2 7.7
* Includes the “settling-in” factors and attrition.
Source: Emsi impact model.
Chapter 3: Investment Analysis 50